The short answer to the above question is NO. This is bad news for Home Heating Oil customers who may not be ordering a Top Up of their Heating Oil tank thinking prices have further to fall. When World oil prices move this changes the price of Gas Oil and Kerosene. These two Home Heating Oil products have fallen in price for most of this Winter but we suspect this is going to change.
The World price of Crude Oil is at its lowest for a very long time due to Saudi Arabia and OPEC not cutting production. In the USA the Government has been filling its strategic reserves with both Kerosene used for flying jets as well as Home Heating Oil and Gas Oil also used for Heating Oil and fuelling vehicles. This strategic storage is nearly full and so the pressure will be on prices as demand falls but production continues at a high level.
This is where Saudi want the USA. With full strategic reserves and low demand where will all the Heating Oil produced by the Fracking Industry go. Saudi hopes this will bankrupt a number of Frackers and in turn production will fall and the USA will be dependent on Middle East Oil again which will then increase in price forcing up the cost of Home Heating Oil. We don’t think this will happen way but that story that is for another day.