Heating oil is generally used in houses that aren’t connected to the natural gas grid. With a population of just around 40,000, Groton is a small town in Connecticut. Many people who live on the outskirts of the town aren’t connected to the gas grid, and have to rely on heating oil to maintain the temperature in their homes. If you regularly order home heating oil, you might have noticed that the prices tend to fluctuate quite often. The prices might be very low at certain times, while they may skyrocket later on. Here are some of the factors that influence heating oil prices in your area.
International Exchange Rates
The fluctuations between the international exchange rates of the Euro, the US Dollar, and the Pound Sterling all have an impact on the crude oil trade. The companies that distribute heating oil throughout the city set the heating oil prices in Groton, CT depending on the international exchange rates. Since they have to purchase crude oil from international distributors, they have to factor in the cost price as well.
Crude Oil Rates
The commodities trade in the international market also has a major impact on the heating oil prices. For instance, the price per barrel of crude oil is considerably low right now. But just a couple of years ago, crude oil prices were skyrocketing across the country. As a result, local heating oil distributors had to adjust their own prices accordingly. Companies must also factor in the costs of distribution in the final price. If you want to order heating oil at the cheapest possible rates, it’s best to keep an eye on the international prices. You can order in bulk when the market falls and then store it in a tank at home for use later on. It’s a great way to save money on your heating oil purchase.