Fuel oil users are enjoying the lowest fuel prices in over ten years. In my opinion, I do not believe the trend will be reversed anytime soon. Here are the reasons for my conclusion. In a nutshell, it's down to too much supply and too little demand.
China's economic slowdown has curbed appetite for commodities in general, while Saudi Arabia, which produces a third of the Opec cartel's output, is keener on preserving its market share than it is on cutting production to boost prices.
At the same time, the rise of the US as a shale oil producer means it now imports less oil, adding to the glut on world markets.
This makes life harder for other non-US, non-Opec producers, who are facing cutbacks, particularly in the North Sea.
In the North East we are experiencing extremely warm temperatures, causing low demand here as well. Low prices and low consumer demand
continue to make heating with oil the best choice.
S. Barkin - Fuel Oil Operations Manager.