Three different circumstances, when all combined, could see heating oil users making sustained savings. These are: a mild Winter, the recent oil price crash and lower worldwide gas demand.
On 8 March 2020, Saudi Arabia initiated a price war with Russia, triggering a major fall in the price of oil. Prior to this, crude oil prices were already falling but the wrangling between Saudia Arabia and Russia saw crude oil prices nose-dive causing the biggest one-day crash since the first Gulf War in 1991, according to the Wall Street Journal.
The two main benchmark prices for purchases of oil worldwide – Brent Crude and West Texas Intermediate Crude – have plummeted by more than 40 percent in less than three weeks.
Worldwide concerns about the coronavirus (COVID-19) have led to weaker natural gas demand; in particular, two major Chinese buyers declared force majeure on all natural gas imports, a common clause in contracts that frees both parties from liability or obligation when an extraordinary event occurs.
These three factors combined could lead to sustained lower heating oil prices, so now is a good time to ensure that you have your heating oil tanks filled up!