Pump Jacks are seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson/Files

Since the beginning of this year, heating oil prices have continued on a downward trend to record lows, and oil heat prices keep falling. We are now witnessing historic moments – as oil prices are now even lower than 2009 recession lows, and this is derived from the same fate of crude oil. Even that extremely cold weather which locked most of the East Coast in ice and huge snowstorms, followed by really low temperatures, did not affect price-cutting trends much. By the time of writing the extremely cold wave is over, and we are already in the second half of the heating season. One will assume that prices of oil heat would fall further but it’s still uncertain.

Unsustainable Oil Prices

Crude oil is now at around $30, a level which can’t be considered sustainable. Worldwide oil production remains high, with now lifting oil export sanctions against Iran, which is keen to export its crude regardless the price, in an attempt to boost its economy, struck by decades of various embargoes which are now gone.

The number of stock trading experts, trader and brokers who expect low prices throughout the entire year including the next heating season is on the rise, claiming that oil is waiting for a higher growth in the US and other developed nations, in particular those which depend on imported oil, which will now have more money to invest and to spend on growth-generating projects instead of saving for procurements of oil, which once was ridiculously expensive.

Even once the economy starts to grow, it won’t push oil prices back to 2014 levels so quickly. Simply, demand for oil will be growing at a much slower pace thanks to the revolution of renewable and green fuels, which are more and more being uses for their environmental benefit rather than economic. Many people today will rather use renewable and environment-friendly ways to get energy, and the number of people who think alike will be on the rise. This will have debilitating impact on oil price in a long term.

Currently, oil heat price is very close to the price of propane, a fuel which is less convenient and has a lower potential than oil heat. These low prices are a good chance for you to order high quality heating oil with additives which increase efficiency of your heating system and extend the life of its core components, including the tank, sprayer nozzle, filters and the furnace itself.

The average retail heating oil price may fall under $1 per gallon as this heating season is approaching its end. This means you should maintain relatively high levels of oil in your oil tank and have it properly filled with high quality heating oil which has never been so cheap.