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Posted by Bob Burton
Heating oil prices have been increasing during this month following a considerable decline in June.
The cost of the fuel was approximately 54p per litre (excluding VAT) on July 11th, but it then climbed slightly before stabilising at around 54.3p per litre on July 13th.
Prices were largely unchanged between then and July 16th when 54.1p per litre was registered.
However, the cost of the fuel rose quite steeply until it reached 55.3p per litre on July 20th.
Further climbs followed, resulting in a price of 55.59p per litre on July 22nd.
More slight increases were registered this week, but heating oil prices then stabilised and finally decreased slightly to 55.71p per litre this morning (July 27th).
This is the highest price recorded since early June and could mean customers hold off buying supplies for winter until they decrease again.
It may be because British people have been unwittingly driving up demand and therefore costs by switching their central heating on in early July when the weather remained poor and very wet.
This would have used up some of the heating oil earmarked for winter and caused a slight boost to demand.
Furthermore, crude oil prices worldwide went up after European Central Bank (ECB) president Mario Draghi pledged his full support for the euro after many weeks of turmoil for the single currency.
This lifted stock markets on both sides of the Atlantic and led to commodity price rises when the euro was boosted against the dollar.
"ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough," Mr Draghi remarked at a London conference.
More demand for oil came from China, which has said some of its biggest cities will be spending money on infrastructure in the near future.
Despite the ECB promise, Phil Flynn at Price Futures Group warned that "Draghi has been known to disappoint the bulls in the past" and so the rally may not last long.
In the meantime, BoilerJuice customers can continue to get the lowest heating oil prices possible by taking advantage of Buying Weekends and the Monthly Savings Scheme.
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Every day we check the lowest 1000 litre price of home heating oil from all our suppliers in all postcode areas and we log the minimum, maximum and average of all these prices. We then provide that information to you in a graph so you can make better decisions when buying your heating oil.More info