Blogs What's happening to the oil price? This really is unprecedented War, who would have imagined that it would be happening in 2022 and so close to home? We must all be feeling the pain of the people of Ukraine. In my last blog on the oil price in May 2020 I was talking about how low the price of heating oil was due to the drop in demand because of the covid pandemic. Now it's a completely different story. The Russian invasion of Ukraine on 24th February 2022 and the subsequent announcement by the UK and US that they will not buy Russian oil has increased the cost of crude oil which was trading at over $130 a barrel. It was about $65 a barrel this time last year. So the price of crude oil has doubled. The price we are paying for heating oil has risen much more than that however. This time last year we were buying oil at 39ppl. Now the price per litre is anywhere between 150-170ppl so the cost of heating oil has tripled. Why the discrepancy? It's likely to be two fold. Firstly, this is such an unprecedented time (yes, that word again which was used so much during the covid pandemic) and the price as a result is extremely volatile and unpredictable. Secondly, local demand is high and suppliers are struggling to keep up with this demand. If demand is high and supply is limited the price will always rise. What can we do? We cannot predict what is going to happen tomorrow, let alone next week or next month. There has been talk that the crude oil price may go up as high as $300 a barrel. This kind of speculation isn't helpful. It only fuels (excuse the pun!) the panic buying raising the cost still further. I can't advise people what to do in case I get it completely wrong. But generally, when the demand for heating oil locally goes down (which it inevitably will) the law of supply and demand should therefore mean that the price will fall. Spring is on its way and the temperatures should rise with it. Be very mindful of how much oil you are using and make efficiencies where you can. How to pay for it Start a monthly savings plan. Put some money aside each month so that when you do need to buy oil you already have the means to pay for it. Suppliers will probably ask you to pay for your oil at the point of order so you need to be prepared for this. Keeping warm I don't want to make the same mistake as some energy companies earlier this winter by suggesting you cuddle a pet to keep warm. But it does make sense to wear more layers in the house. My son gave me a lovely big blanket for Christmas and it is proving to be a most useful present. If you are living with a long term health condition or you have children under 5 years old you may be entitled to some additional support. Have a look at the Derbyshire County Council website. Oil Buying Scheme Our oil buying scheme works to keep the price of oil as low as possible for members by buying collectively. However, the current situation is so extreme that we cannot guarantee that we will be able to secure a price for our members. Keep an eye on our social media channels and our website for updates or make sure you are signed up to our regular email updates. Fill in the form below. Sign up here.