When you have seen the crazy ride oil prices have taken in the last year, it can be a bit dizzying. Early in the 2018-19 heating season, oil prices rose by 10 percent. But then by spring, oil prices had plummeted 20 percent.
With all that, it’s fair that you might wonder if heating oil is the right choice when it comes to value for your Seacoast region home.
Spoiler alert: IT IS.
Heating oil is derived from refining crude oil. Crude oil, the base of many other fuels, is a globally traded commodity. Commodities are most commonly raw materials which can be bought or sold and include crude oil, wheat, cattle, and metals such as aluminum and copper.
With global trading comes a whole lot of different forces and factors that can drive the price of crude oil up or down. Factors such as politics, international disputes (such as the recent drone attack on a Saudi oil plant), natural disasters in oil-producing areas like Hurricane Harvey in Houston in 2017, or issues in the oil industry like labor disputes or strikes can affect the price of crude oil, which trickles down to how much you pay for your heating oil.
Despite all that uncertainty, if you look back over history in terms of heating oil prices, you’ll see once again that heating oil remains a good value today. In fact, when you adjust for inflation, home heating oil actually costs much less than it did years ago, making it an even better value than you thought!
The oil market will always be fluctuating, rising and falling. But heating oil remains an affordable energy source for keeping your home warm and comfortable. Not only that, today’s ultra low sulfur heating oil leaves fewer deposits on your heating sytem’s heat exchangers. That means you save money with fewer repairs. And less wear and tear on your heating system makes it last longer so you get the most from your investment.