The cost of heating oil has dropped sharply in recent months. According to the U.S. Energy Information Administration, declining prices have saved Northeastern consumers about $3 billion. However, many experts warn that customers shouldn’t be complacent about these costs, because they may have to pay more again in the near future.
Facts Consumers Should Understand
Record low costs of heating oil are encouraging, but they are not a long-term solution for many struggling families. Here are some things to be aware of.
Prices May Rise in the Future
Oil prices have been near record lows for the past couple of months, but are recently showing signs that they may be starting to rise again. The Maine Governor’s Energy Office recently reported that the price of heating oil rose by 4 cents a gallon over the past two weeks. Other states are releasing reports indicating that prices are likely to increase in the near future.
Record low heating costs are primarily driven by strong oil production in the United States, because many local companies are trying to force OPEC to drive their prices lower. However, there are signs that domestic oil companies will be unable to continually produce enough oil to meet the demand of U.S. consumers, which would eventually cause the prices to rise again as OPEC regains its near monopoly on the global oil market.
Waste Drives Both Prices and Costs Higher
Like any good available on the market, the price of oil is driven by supply and demand. Some consumers may be less cautious about the amount of oil that they use. Unfortunately, the problem that this creates is two-fold:
- They fail to recognize that their consumption use is increasing in line with declining prices, which can cause them to spend unnecessary amounts of money on oil.
- Wasteful consumption bolsters demand on the global market, which will play a role in driving prices higher over time.
Consumers always need to be cautious about the amount of oil that they use. You will always regret using a lot more than you really need.
Make Smart Energy Decisions
All consumers should make good decisions about the amount of oil that they consume. You should look for energy cutting strategies to minimize consumption. You should also make sure that your heating system is properly setup to increase energy efficiency. Consider speaking with the experts at Middeltown Air Conditioning and Heating to help you create an affordable heating system for your home.