Heating oil prices

Hey guys. I wanted to get your take on this. I just called around to some local oil companies. There seems to be a budget price of $4.49/gal. But I would have to pay an $18/ month fee to get the lowest price if oil goes down. That also provides a cap of $5.29/gal. If I gamble and think oil will go below $4.49/ gal. I could pay for oil as I need it. I run the risk of oil skyrocketing. I currently use about 800 gal./season. I won’t need a fiil up until about November. Do you guys think oil will increase or decrease? I’m just wondering if I should lock in a price or pay as i need it. Any help would be appreciated. Thanx

Wow. I hear nothing but the crickets!! :biggrin How about if I just ask if you guys think oil will go up or down this heating season?

Any of us could wager a guess, but unfortunately there are so many factors playing into the prices (any of which could change very quickly) that I don’t think you’ll get any reliable information. I’ve seen reports recently about Americans have cut down on driving since last year. That and the mention of possible offshore drilling have helped reduce prices somewhat. But we still have hurricane season ahead of us so who knows what that will bring. Then we also have had Iran acting up for awhile. Either one of those could cause supply fears and make prices jump right back up. Then we could have another terrorist attack of an oil supply line or oil terminal.
I think with the current economic worries, we’ll still see a pull back of usage and not a lot of long unnecessary trips by Americans. That will help, but any of the above issues could change prices overnight.

it will go down by winter time. right now its 118/ barrel, it will probably have a run up for a little while but I’d bet it goes down.

well to get better advise i need more info, i dont use oil so i have no idea its cost compared to gasoline. are they the same ?? if gasoline cost $4/gal at the pump does heating oil cost $4/gal ??

The question is do you think the ECONOMY will get worse this winter??

Personally, I think it WILL. AS the economy weakens OIL prices FALL.

Watch what’s going on overseas…Europe just might be in worse shape than we are very shortly. As their economy falls, the dollar gains and oil drops.

Well my local oil companies are quoting cash prices of about $4.29/gal. You can “lock in” at about $4.49/gal. but that’s mainly used for calculating a budget plan. It can go higher. I’d have to pay an additonal $18/month to get the gas price at the lower price if it goes lower. It also gives me a cap of $5.29. This is coming from my current oil provider that bought their oil a few months ago when the price was higher. Basically I need to guess that oil will not go above $5.29/gal. and it will actually go below the current cash price of about $4.29. My gut feeling is that oil will go down. I could just pay the cash price whenever I need a fill up. I wish there was just an actual “lock in price”, then perhaps pay a little more for the price protection. I might just stay away from the lock in plans and pay the cash price when I need oil.

Thanx guys, fdjake I agree with you on the economy. I’m kind of hoping for an economic “downturn”. More than what we’ve seen. I think you hit on the money ( in one of your older posts) about the people who are not in foreclosure yet, but are at the edge of financial disaster with high debt.

Ive been reading a tip for stocks. this guy whos got a very impressive track record as been saying short the Euro. I keep hearing europe is in for a bumpy ride now.