Why are oil prices rising?
Oil prices have been rising over the last few months and are now the highest in 14 years. The BBC News has shared that Brent Crude Oil is at $139 a barrel.*
For heating oil households, this will increase the price of kerosene28, which may affect their heating bills.
As oil prices are affected by demand and supply, conflicts between countries can create uncertainty around oil production in refineries, leading to the increased price of kerosene28.
Has the Russian invasion contributed to the rise in oil prices?
In short, the answer to whether Russia’s invasion has impacted oil prices is yes. Oil has risen in price over few weeks as the tensions between Russia and Ukraine increased. On the 24th February the announcement of the invasion resulted in oil prices rising by +8.50% in less than 24 hours, taking the price of Brent Crude Oil to a high of $105.02 per barrel*. (*Sourced 24/02/22 oil price comparison from 1am vs 11am)
Will the cost of oil continue to rise?
Currently, Russia is the second-largest oil producer, therefore any disruption with supply can impact oil prices globally. Disruption to production is not the only factor that will impact oil prices, sanctions for oil-producing countries can also impact the cost of oil. Due to the invasion by Russia, sanctions from Europe and the U.S are being enforced, and it seems there is more to come.
How can I prepare for a rise in heating oil costs?
There are a few things that could help you prepare for the rise in heating oil costs.
- The Payment Plan – You can save with small monthly payments for your next heating oil order. Go onto our homepage and select the payment plan tab to complete the setup.
- Buy Kero boxes – If you need a small top-up to keep you going we’ve got Kero boxes available.
To can keep up to date with average oil prices please visit BoilerJuice.
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