Factors Affecting Heating Oil Prices in Norwich, CT

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Home heating solutions range from wood burning stoves to technologically-advanced geothermal units. However, oil is among the oldest and most-trusted source of heat. Even though oil provides even heat throughout a home, only six percent of American homes utilize this heat source. In fact, out of this small demographic, the bulk of households resides in Northeastern states. Much like other utilities, heating oil prices are on the rise. To accommodate price increases, there are several factors one must be aware of.

The seasonal demand affects the prices of home heating oil. Purchasing oil in the summer months is exponentially cheaper than in the peak of winter. The average Norwich, CT homeowner may utilize anywhere from 850 to 1,200 gallons of heating oil during the winter months. However, the same homeowner may utilize a fraction of this during spring and summer. Therefore, crude oil prices tend to spike during December, January and February. The lowest prices are often seen in June, July and August. However, rates begin to gradually increase in September. This is when the bulk of homeowners begins filling oil tanks.

Crude oil cost fluctuations impact heating prices tremendously. Crude oil is a primary constituent of heating oil. Therefore, as crude oil costs increase, so do heating oil rates. Much like gasoline for vehicles, these rates are affected by the worldwide economy. For example, a natural disaster may disrupt crude oil production causing a price increase. Monitoring worldwide crude oil supply and demand provides insights into future rate increases or decreases. Local market competition can cause the price of heating to go up as well. National rates for heating oil can significantly vary due to local demand. When living in a small community, there may only be one or two oil suppliers. Therefore, as demand on these suppliers increases, so will their rates. To obtain local Heating Oil Prices in Norwich CT can find more info here.

Where a supplier obtains their oil directly affects Heating Oil Prices in Norwich CT. Because oil may travel from Europe or the Gulf of Mexico, transportation costs are factored into the final price. The duration between oil shipments may alter the final oil price. As supplier storage dwindles, oil rates simultaneously increase. Therefore, contact a supplier to determine the heating prices in Norwich based upon their current supply. Ask about their delivery dates. Schedule oil tank refills immediately after a new shipment of oil arrives.