Heating oil is still commonly used in many places where a direct connection to the municipal gas lines is not available. This type of oil is still very common in Norwich, Connecticut, where hundreds of homeowners order the oil and use it during the winter months. As the winter months approach, more and more people turn on their oil-operated heaters. After all, as temperatures plummet, using a heater is essential for ensuring warmth and comfort in the house. You might have noticed, however, that the prices of heating oil generally tend to vary every other time that you place an order. Here are some of the factors that can have an impact on the price.
International Rates
The international rates of crude oil on the market have a major impact on heating oil prices in Norwich, CT. Since this is a floating market, you should know that the rates tend to differ every other day. Some days, the crude oil rates are lower, while in some cases, they might spike. Therefore, one of the most important factors that affects the prices of heating oil in Norwich, CT is the international exchange rate of crude oil in the markets.
Supply and Demand
Most companies usually have limited reserves of oil, so the factors of supply and demand also play an important role in determining the value of oil in the markets. When demand is higher, the price of oil on the market increases, and so companies raise their prices. As demand falls, the prices are reduced automatically so that more people start to buy the oil. These are self-balancing factors that are constantly in control of the price of oil in the markets.