Even today, there are numerous houses which do not have access to gas. Since gas heaters are generally the standard choice for homeowners, the only other option available to homeowners is to rely on heating oil. This is a specially refined oil that burns for a longer period of time. The oil is poured into a furnace or heater and burns, emanating heat and increasing the temperature within a confined space. However, you might have noticed that the prices for this oil tend to fluctuate depending upon when you place an order. Here are some factors that affect the price of heating oil.
Price of Crude Oil in International Markets
Over the past few years, the prices of barrels of crude oil have decreased sharply. As a result, the prices of heating oil have also fallen. Companies that sell this refined oil first have to buy barrels of crude oil and then refine it. If the prices fall, the benefit is transferred to the consumer. Local companies that offer Norwich heating oil factor in the price of crude oil barrels in every sale.
International Exchange Rates
Another important factor that affects the prices of heating oil in Norwich, CT is international exchange rates. Since most of the oil is imported from different countries, the exchange rate between the dollar and the currency of those countries is also factored into play. There are many reasons why currency exchange rates tend to fluctuate. One of these reasons is the political instability other countries. Keep in mind that the VAT and all other duties and tariffs are also factored into the retail price of heating oil. Before placing an order for oil from any company, it is important that you check the rates offered by other companies and choose the company that offers the most affordable rates.
