We may not be experincing the snow fall that America is but the recent drop in temperatures is a timely reminder winter is fast approaching. Experienced Oil Buying Club Managers know that November is the most important order of the year. It’s the last opportunity for club members to fill up ahead of the Christmas period, with supplier schedules affected by depot closures during the seasonal break and January often being the start of colder weather and increased demand for oil.
The Met Office review of the month so far suggests Autumn has been warmer and wetter than normal. Gas suppliers have ‘felt the heat’ with lower demand impacting profits. Centrica – British Gas has reported demand down 21% amongst domestic users in the first 10 months of this year.
Amongst domestic oil users it’s more difficult to get a clear picture of demand but there is no doubt that a combination of lower usage and lower crude oil costs are helping ensure that heating oil prices remain at some of the lowest levels we have seen in years. OFTEC, the trade association for the heating oil industry, reports that the cost of heating an average home with oil is now within 2% of Gas. It’s likely that anyone using a local oil buying club scheme will more than cover that gap, with typical saving s of 5 – 10% versus buying direct.
There is a risk that the combination mild weather and low prices will make oil buyers complacent. Our advice is fill up now; take advantage of the great prices available and order to fill your tank. Our clubs are all reminding their members about the importance of the November order, effectively the last before Christmas. The volume of orders means they can work with their suppliers to obtain the best value possible for their members.
If you want to join one of our clubs or want to find out more about Oil Buying Clubs you can find us at Oilbuyingclub.com