Domestic Heating Oil

Headline 10th January 2020

Continuing mild weather, a positive outlook for the exchange rate and downward pressure on the crude oil price are all downward signals for the heating oil price, for the time being.

Latest Price for Domestic Heating Oil

This is simply the information available at any given time and intended purely as a rough guide as to whether prices are rising or falling. The price in Stockland has always been cheaper than the UK average and by as much as 5p in the past.

Date UK Average Price Trend
16th January 2020 50 pence Falling

Price History from the Office for National Statistics

Chart range now Jan 2016 to December 2019

(Office for National Statistics - Dec 2019 - next update due on 15th Jan)
The lowest price since 2011 was 28.6 pence in February 2016. The most recent peak was 59.9 in October 2018.

Watching the trend in heating oil prices

Exchange Rates

Stock market prices and fluctuations in the exchange rate are very strong factors affecting the price of heating oil. In the past 2 years the GBP/USD exchange rate fell from highs of $1.53 in Sept 2015 and $1.49 in June 2016 to a low of $1.20 in Jan 2017. It peaked again at $1.35 the day after the December 2019 election. The live ticker below shows how many dollars one pound and one euro are worth now. Oil is traded in dollars so a higher rate is good news.

Exchange Rate News
10th January 2020
LONDON (Reuters) - "Britain’s pound will gain more than 3% against the dollar this year, supported by interest rate differentials and hopes for a smooth departure from the European Union, a Reuters poll found on Friday. Sterling GBP= has gyrated wildly on any snippet of news about Brexit, largely ignoring economic data, and soared more than 2% after Prime Minister Boris Johnson won a resounding election victory in December, leading markets to believe an orderly exit from the EU was all but certain. It has since dropped back and was trading around $1.30 on Thursday as Johnson has signalled he plans to take a hard line in talks with the EU, raising fears about the prospect of a new cliff edge at the end of the year if no deal is reached. But the poll of nearly 60 foreign exchange strategists, taken this week, said the pound would be up at $1.32 at the end of this month - when Britain and the EU are due to part ways - and will have risen to $1.35 by the end of 2020."

Crude Oil Prices

The trend in the price of heating oil tends to follow the crude oil price trend but there is often a time lag. The Brent Crude Oil chart on the left at the foot of the page shows the price range over the last eight months. The chart on the right covers recent weeks and gives live trading data for ULSD (Ultra low sulphur diesel) on which heating oil trading is now based. In the UK the domestic heating oil you buy may be referred to variously as Standard Grade Burning Oil (SGBO), UN1223 Kerosene or 28 Second Heating Oil. It is tinged yellow with a Euromarker dye to distinguish it from other petroleum products because it is tax rebated.

Crude Oil Price News - 10th January 2020
LONDON (Reuters) - "Oil slipped towards $65 a barrel on Friday as the threat of war in the Middle East receded and investors focused on rising U.S. inventories and other signs of ample supply. Brent crude LCOc1, the global benchmark, was down 20 cents at $65.17 by 0928 GMT, and was heading for its first weekly decline in six weeks, down about 5%."

OPEC Oil Price
Introduced on 16 June 2005, the OPEC Reference Basket (ORB) is currently (Oct 2019) made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela), Djeno (Congolese). The price below is a live feed from OPEC.

To put this price in context it reached a peak of 136.34 back in July 2008 and a low of 22.48 in Jan 2016. Since then the overall trend has been up until a peak of 83.24 on 3rd October 2018 with a more recent peak of 74.04 in April 2019 amidst a bumpy decline to its current value.