In reviewing this past season’s heating oil prices and comparing it to the chart below, it appears we are returning to a more moderate cycle of pricing than we have seen in the past few years. This is a welcome relief from few years of high prices. This graph chronicles the spiking that happened in our peak season in each of those years. At this point we are at the same price points as ten years ago. Is this a typical cycle that could be repeated in the future? For now, we have to take it one year at a time, and offer fuel programs that will work to meet all our customer’s needs.
Source: Massachusetts Department of Energy Resources
Another year is upon us and we have many things that are shaping our world events….and heating oil prices.
OPEC and non OPEC producers are still committed to slowing their pumping activities and committed to making us pay more for our heating oil! There is also the matter of our shale producers, who seem to be able to counter the effects of OPEC’s actions whenever the price goes up. They bring on more rigs to pump oil and this countervailing power seems to keep prices steady. Meanwhile there is still a perception in the markets that there is a glut of oil. We have political turmoil around the world. How will this affect prices? Is our weather going to be warmer or colder than normal? We have a global oil market where the only certainty is volatility.
So where does this put us as we move into a new heating season? How will this supply conundrum impact our prices? How can we best protect our budgets and the prices we are paying for our energy costs?
With this uncertainty in mind, we have designed fixed, floating and capped oil contract options, all designed to make you feel secure that you have choices in controlling the cost of your heating oil. These options should satisfy most customers with protection solutions.
We still have our prepaid oil contracts that enable consumers to “lock in” a fixed price. This offers piece of mind and prevents a possible spike in the oil price, should conditions become volatile in global oil markets.
We have reintroduced several programs that enable our customers to have downside protection for a modest fee. This effectively gives a homeowner “a ceiling without a floor” where they will be protected against a spike in prices, while conversely enjoying a lower price if the market goes down. This is truly the best of both worlds!
We have expanded our budget options so customers can avoid the mid-winter cash crunch and even out payments during the year.
Our vision and hope is that we have stable markets where we can provide our customers the best protection against market volatility. We appreciate the opportunity to serve our customers with the best prices and service available. Please feel free to contact us with questions about what the best solution would be based on your personal needs.
The Surner Family