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Staying Optimistic about Oil Prices

Posted: September 22, 2017

As winter approaches, we’re hopeful that oil prices will remain stable. Advances in technology have brought us historic levels of domestic oil production, and a heating fuel that burns cleaner.

Our country is producing so much oil now that we are moving toward being a net exporter of oil, rather than a net importer. And that’s good news for prices.

Heating oil, like diesel fuel and gasoline, is a “finished” product derived from crude oil. That’s why heating oil prices are so closely tied to the price of crude oil.

While we will still experience periods when prices go up because of cold weather or unexpected events (like hurricanes temporarily shutting down refineries), the long-term outlook is very positive for oil prices.

This is a lot better than what’s going on with natural gas, whose cold-weather pipeline problems can cause supply slowdowns.

Thousands of miles of old, leaky natural gas pipelines won’t be replaced for decades due to the high cost involved, though when the work does happen, most of the cost (as much as $1 million per mile!) is eventually passed on to customers. In fact, this is being proposed right now in Pennsylvania!

You should feel good about choosing heating oil, and you can count on Wilson Oil & Propane to be here for you this winter and every winter. Please contact us anytime and let us know how we can help you.