Posted: July 15, 2024

A Consumer’s Guide

As the seasons change and temperatures rise, the need for heating oil becomes less of a pressing concern for many homeowners like yourself. Heating oil, a crucial commodity for maintaining warmth in colder months, can fluctuate significantly in price throughout the year. To optimize your spending and ensure a warm home without breaking the bank, understanding the best month to buy heating oil is essential. And so even though summer isn’t a time when you usually think about heating or heating oil, now is a good time to be thinking about it.

Understanding Heating Oil Price Fluctuations

The price of heating oil is influenced by several factors, including crude oil prices, supply and demand, weather conditions, and geopolitical events. Crude oil prices play a significant role as heating oil is a refined product of crude oil. When crude oil prices rise, so do heating oil prices. Conversely, when crude oil prices fall, heating oil prices generally decrease as well.

Seasonal Trends in Heating Oil Prices

Heating oil prices tend to follow a seasonal pattern. Historically, prices are lower during the warmer months and higher during the colder months. This trend is primarily due to demand. During winter, the demand for heating oil peaks as households turn up their thermostats to stay warm, leading to higher prices. In contrast, during summer, the demand drops, often resulting in lower prices. That may make now a great time to fill your tank.

The Best Month to Buy Heating Oil

Considering the seasonal trends and various influencing factors, the best month to buy heating oil is typically during the late summer or early fall, specifically in August and September. Here’s why:

• Lower Demand: During the warmer months, there is less demand for heating oil. Homeowners are not using their heating systems as frequently, leading to a surplus of supply. This surplus can drive prices down, making it an ideal time to purchase.
• Stable Weather: August and September generally experience stable weather conditions. There are fewer unexpected weather events that could disrupt the supply chain or cause a sudden spike in demand.
• Refinery Maintenance: Refineries often schedule maintenance during the spring and fall. By late summer, they have typically completed their spring maintenance and are fully operational, ensuring a steady supply of heating oil.
• Market Predictions: Many experts predict that crude oil prices are more stable or lower during the summer months. By purchasing in August or September, you can often take advantage of these lower prices before any potential increases in the winter.

Tips for Buying Heating Oil

To maximize your savings, consider these additional tips when purchasing heating oil for your home:

• Bulk Purchases: If you have the storage capacity, buying in bulk during the late summer can help you lock in lower prices.
• Budget Plans: Many suppliers offer budget plans that spread the cost of heating oil over several months, making it more manageable and less susceptible to seasonal price fluctuations. For example, the Ace-Robbins EZ Pay plan, we divide your estimated annual heating oil payments into 12 manageable monthly installments.
• Monitor Prices: Keep an eye on heating oil prices throughout the year. Even within the optimal months of August and September, prices can vary. Monitoring prices can help you buy at the lowest point.

The Bottom Line

Buying heating oil at the right time can result in significant savings. By understanding the factors that influence heating oil prices and recognizing the seasonal trends, you can make informed decisions. For most homeowners, the best month to buy heating oil is August or September, when demand is low, and prices are more favorable. Plan ahead, take advantage of lower prices, and ensure a warm, cost-effective winter season.

A Dependable Heating Oil Provider

Ace-Robbins offers our customers in the greater Tunkhannock area and beyond dependable and affordable heating oil deliveries. We also offer a free automatic delivery service to reduce the risk of a run-out.

Contact Ace-Robbins today for more information on heating oil delivery.