There are many factors that cause energy prices (crude oil, natural gas, electricity, coal, propane, etc.) to rise and fall. These include:
All of these factors contribute to the normal trend of ups and downs in the energy markets. But “speculation” has been the primary catalyst fueling the extremes we have seen in recent years. Speculators from giant banks, hedge funds and even pension funds “bet” on which way the markets will move, hoping to make money from their investments.
Unfortunately, everyone gets caught in the whipsaw effect of increased costs and uncertainty. It hits homeowners in the wallet and has other ripple effects. For fuel dealers like us, the cost of hedging programs, which help stabilize prices for our customers, has gone up dramatically because of volatility in the energy markets.
Like you, we would want nothing better than to see oil prices stabilize and stay at lower levels.
At Wilson Oil and Propane, we appreciate your business, and we will continue to do everything possible to give you the best value for your hard-earned money.