Heating oil by refining crude oil or petroleum

Heating oil is produced by refining crude oil or petroleum. Residential use makes up most of the heating oil that is used around the world. Even though natural gas is becoming one of the most commonly used fuels to heat the home, heating oil still remains very popular with many people.

As with all fuels, supply and demand affect the prices of heating oil. The trend in global crude oil will determine the price you pay for your heating oil. If the supply of crude oil outweighs the demand, then the price of heating oil is traditionally lower. Normally the demand for heating oil is a lot lower during the warmer summer months so supply is usually high at these times. However if there is a shortage of crude oil the prices will rise. Another factor which makes the heating oil prices rise is an increase in demand for crude oil products which is often the case in the winter.

There are also other factors which can affect the price of heating oil. Some providers of heating oil actually increase their prices too much and then see many of their customers switching to a more affordable supplier. Customers who have decided to stick with their oil supplier may then find a sudden decrease in their oil prices as the company fights to keep them.

Not only do the colder winter months bring higher demand for heating oil and an increase in prices accordingly, but harsh winter conditions can affect the supply routes of the oil. If there is a difficulty getting the oil to wherever it needs to be, prices can rise quite dramatically. Because of the expense involved in getting oil to more rural homes, the overall price of heating oil for everyone is affected. If you can get your oil prices fixed however, you may find that you are better off in the long run.

Getting the home heated up during winter can be very expensive. Electricity and gas prices are very high and show no signs of coming down any time soon. Many individuals are now changing over to cheaper home heating oil though. When they do they always need their tanks filled with Boilerjuice ensuring they can always heat their home in winter.