A good time to buy?

The price of heating oil is much more volatile than the price of crude oil published in daily newspapers.

You can save significant sums by keeping yourself informed. The regular buyer can probably save more by buying at the right time than by changing from one supplier to another, especially as a changing supplier can add an extra dimension of risk to an oil delivery.

The daily price fluctuates according to demand and supply. Supply is relatively easy to forecast. It takes about five weeks for oil to pass from wellhead to consumer, but demand can vary hugely, and weather conditions are not the only influence since jet aviation fuel and heating oil are basically the same. The biggest influence on demand is market sentiment, whether oil buyers generally decide to build or decrease stocks.

Shown here is a graph in £ per tonne of heating oil cargoes traded on the Rotterdam spot market, the basis of European oil pricing. We update this graph around midday each working day and provide a medium term forecast based on information from several sources. This is no more than an organised guess for your consideration. The buying decision is yours!

Medium term forecast: Markets are reasonably calm but strong demand for heating oil in Europe is keeping prices at higher levels Our opinion? The balance between supply and demand is precarious and consumers should not allow their stocks to fall below two weeks consumption. Click here for an instant quote.