Why are oil prices rising?
Oil prices have been rising over the last few months and are now the highest since June 2014.
The BBC News has shared that Brent Crude Oil is at $113 a barrel:
https://www.bbc.co.uk/news/business-60584798
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.
Hence, if Russia does not retreat from Ukraine, we will likely see oil prices continue to increase in price as the supply may be affected.
How can I prepare for a rise in heating oil costs?
There are a few ways that we believe will help prepare for any increases in heating oil.
Nolan Oils recommendations:
- The Payment Plan - you can save with small monthly payments for your next heating oil order.
- Go to our payment plan tab to set up:
www.nolanoils.co.uk/order/setting-up-a-budget-account/
Other options available:
- Regular Supply - get automatic top-ups of oil and split your annual heating bill into monthly payments.
We’ll monitor, order your oil and get you a great price without you having to lift a finger.
- The Direct Debit Plan – regular monthly payments to settle your account within 4 months.
We provide the option to split the cost of your heating bill.
