Chris Skrebowiski editor of Petroleum Times is reported this morning of warning that if we are only one incident away from a serious oil spike. He is referring to the current problems in Syria and the possibility of US and UK war planes and ships attacking Syrian facilities. If this were to happen the price of oil will shoot up from its current increasing levels. Brent crude is now up to its highest level in five months bringing on the expected winter increase earlier than expected.
This is all bad news for the users of Home Heating Oil as the price of crude oil has a direct knock on effect on the price of Kerosene and Gas Oil used for Home Heating Oil also known as Domestic Heating Oil.
The situation in Syria is one of the pressures on World Oil prices. The Chinese have increased the amount of Crude Oil they import by 6.6% to 9.82m barrels a day according to Platts last week. This puts further upward pressure on Oil prices and helps to increase the cost of Domestic Heating Oil.
Although the signs are not good, the Saudi Arabians are offering the Russians a secret oil deal as reported in the Business Section of today’s Telegraph. How it can be a secret deal when it is all over the front page of a major newspaper your guess is as good as mine?
In short it seems the Saudis want to come to a worldwide deal on the price of Crude Oil and need the Russians to work with them, almost getting Russia to be an honorary member of OPEC. If this did work ( don’t hold your breath) then it could be good news for the price of Kerosene and Gas Oil bringing down the cost of Domestic Heating Oil or at least stabilising the cost in the coming winter months.
My view from all these mixed messages: Top Up your Home Heating Oil tank now and then pop down the pub and tell all your friends how you managed to beat the market.
If you wanted to learn about how you can ensure that your Home Heating Oil is always monitored and topped efficiently when the prices of Oil are not spiking, get in contact with one of the Top Up Fuels team, we are more than happy to help, call now on 0203 0111 232