HEATING OIL - UPDATE AUGUST

08.21.08

This is probably one of the hardest topics to give an accurate forecast on, however oil has been dropping rather precipitously since I last wrote on the subject.

For example, a spot price in Fall River Massachusetts had a posted amount of $3.56.9 per gallon! Way below any price protected plan available in CT and nearby NY. Fall River, MA. is not in our area but you can get the point. The problem is longer term pricing.

Time runs out at the end of August for Hull Fuel's price plan which was between $4.57 and $4.63 a gallon when I last looked at it. Spot pricing is quite far below that and all current forecasts are for oil to continue to drop.

The problem is news will come out about whether the winters will be colder than usual - both here and in Europe; whether the oil flow from Russia will be cut off due to international tensions with Georgia - or somewhere else; whether there is renewed conflict elsewhere in the world, etc., etc., giving rise to investment speculators to cause the price to start upward again.

Right now, as I said a couple of weeks ago, it would be advisable to fill your tanks at "spot pricing", saving money now, and then decide whether to buy at market, or buy a plan. I have NO advice, on which way to go.


©2008 R. Leech features.