Low Oil Prices Windsor, Somers, Willington, CT
Are you looking for more information on oil prices in Windsor, Somers, and Willington, CT? Oil prices are one of those things that are constantly fluctuating. At E-Z Oil Company, we guarantee to offer you the best price possible for your heating oil. Oil prices can be impacted by various aspects, some of which may come as a surprise to you. Read on as we discuss some of the reasons behind forever-changing oil prices.
Supply and Demand
Firstly, supply and demand is the number one deciding factor for oil prices. Simply put, when the demand for oil raises, so does the price. When people are open to paying a higher price for it, the suppliers can charge more. On the other hand, when the demand is low, and supply is high, the price will drastically drop. At E-Z Oil we promise to always offer the best price we can to our loyal customers.
Secondly, a variable that influences oil prices is political instability. When a country is encountering political turmoil, it can become difficult for businesses to deliver oil, and the supply is therefore reduced. This typically happens around major elections and political events. E-Z Oil always offers home heating oil delivery when you need it.
Speculation and Speculators
Thirdly, prices can fluctuate thanks to speculation and speculators. If a speculator believes that the price of oil is about to rise, they will buy it in excess to resell later at a higher cost. Because of this, oil prices fluctuate depending on how much speculation is happening at a given time.
Lastly, The Organization of Petroleum-Exporting Countries (OPEC) is a partnership consisting of many different countries that produce oil. OPEC is known to utilize its ability to exploit oil prices by controlling the amount of oil available to be purchased and sold. You will find that when OPEC chooses to raise the supply, the oil price will drop because there is more of it to buy. When OPEC chooses to limit the supply, the price of oil rises because it’s not as readily available.
Thank you for stopping by and reading our latest blog on oil prices in Windsor, Somers, and Willington CT. We hope this helped you to understand the fluctuations in oil prices, and trust that at E-Z Oil Company, we always stand behind our choice to offer customers the best price possible on heating oil. If you have any questions please contact us at (860) 645-3758 or visit our website for more information.