Oil prices have been steadily rising since December. Since the first week of January 2022 alone, residential heating oil prices have gone from $3.39/gallon to $3.77/gallon. This is compared to $2.569/gallon at the close of January 2021.
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As global demand for oil continues to recover, it's crucial that OPEC meet its production targets to keep the global market supplied. If production does not stay steady/increase, demand will exceed supply and continue to push oil prices higher.According to an article by Reuters, "analysts attributed the late rally to growing concerns that extended cold weather could hit production in Texas, exacerbating the tightness in world crude markets." Over 200,000 people across the U.S. have already lost power due to the cold. This combined with recollections of Hurricane Ida's damage to Texas has caused widespread fear.
In other words, freezing temperatures expected through this weekend threaten to cause freeze-offs at oil production sites, which may reduce supply further.
Bob Yawger, director of energy futures at Mizuho, said that this talk has begun to drive oil prices higher.
Still, OPEC has not increased output, according to MarketWatch. Between some members failing to meet production targets and tensions involving Russia and Ukraine, global oil supplies may be at risk.
Although prices are hurting your heating bill, there are easy ways to save a little. Try reducing your thermostat one degree to save up to one to three percent on your bill. You should also schedule annual heater maintenance if you have not already. This will ensure your heater is running at maximum efficiency and saving you money.
Make sure your home has proper insulation and that your windows and doors are effectively sealed, too. Click below to read more helpful winter tips.
Living in Lower Bucks County and surrounding areas? Visit our My Express Oil site for discounted home-heating oil.
