Heating oil prices 'likely to shock'

29 October 2007

The cost of heating oil is set to continue rising as winter sets in, according to a market expert.

Figures compiled by BoilerJuice show the average price of heating oil in the UK has risen by 19 per cent in the past six months, while government statistics show that the retail price is already 20 per cent higher in the US than it was 12 months ago.

And with geopolitical events and fears of supply problems ahead of the high demand of the northern hemisphere winter forcing the value of crude oil up, Phil Flynn, an analyst at Alaron Trading, believes things will get worse.

"Heating oil is expensive. It's already at a near-record price and it's not even cold yet. Prices have been going up each year but this year's prices could really shock people," Mr Flynn told the Tribune-Review.

Wayne Michael, president of North Carolina-based Grace Fuel Oil Co, recently told the Citizen-Times that many of his customers are worried about the potential for further price rises and are ordering their winter supply of heating oil in advance in an attempt to keep their fuel costs down.