Factors That Determine the Price of Heating Oil in New York
- September 22, 2021
- Doris Gray
Heating oil is ideally used in houses that aren’t directly connected to the natural gas grid. There are hundreds of houses in the small town of New York that still use heating oil during the winters to keep the water and the rooms warm. Home heating oil is different than ordinary types of oil. It has a lower viscosity, which allows it to burn for much longer periods of time. Because there are so many companies currently offering this type of oil to homeowners in New York many people have difficulty finding the best option. However, you may have noticed that every time you place an order, the prices generally vary. If you are confused about the factors that determine the change in prices, the following information will help you better understand.
International Crude Oil Prices
Heating oil companies such as Cohler Fuel Oil Co Inc generally purchase their oil from international resellers. The prices of crude oil tend to vary regularly on the commodities market. The changing price of crude oil is one of the major factors that every fuel oil company has to consider. When the prices of crude oil are higher, the prices of heating oil are naturally increased as well.
In some cases, weather also affects the price of heating oil in New York. Seasonal changes in the weather have a major impact on the demand for this type of oil. As demand falls, companies have to lower the price to maintain their customer base. Similarly, as demand increases in a particular season, companies increase the price to earn more money. It’s the basic law of demand and supply. In certain situations, restrictive legislation may also play a role in determining the overall price of heating oil.