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Heating Oil - $2.39.9 per gal. Capped till 1/1/06 is this OK?

My small print says they can raise the price due to unforeseen circumstances like war or natural disasters. Hope it doesn’t fall through!

Comments

  • gisella
    gisella Member Posts: 4
    Price of home heating oil currently for the nassau county area

    I locked in with a company for 239.9 till first of next year!
    How much higher legally could they adjust the price per gal
    in January. Also how much typically would replacing a standard oil burner interior lining of chamber run in price?
    Thanks LAdy Gisella
  • Dan Goodridge
    Dan Goodridge Member Posts: 62
    lockin

    You have exactly what you wrote -- A price that is locked till 1/1/06. At that time , you go to the market price ( whatever it may be!)
  • Steamhead
    Steamhead Member Posts: 16,736
    That's probably a fairly good price

    given what I know about current prices in the Baltimore area. But in January, watch out! It may well be over $3.00/gallon by then.

    Not knowing what equipment you have, I can't give you any idea of what's involved in replacing the chamber. But if you have an older heating unit which does not have a flame-retention (high-efficiency) burner, and replacing the entire unit with a higher-efficiency model can't be done in the near future, it would pay to replace the burner as well as the chamber. Fuel savings from a burner upgrade can run 20% or so.

    And of course, the unit must be maintained properly. If a flame-retention burner is properly installed and tuned, it will run all year without making soot.

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  • Firedragon_4
    Firedragon_4 Member Posts: 1,436
    Go kiss that guy

    and offer to marry him, FACT!
  • Jon S._3
    Jon S._3 Member Posts: 9
    I got 2.15

    I thought 2.15 was high back in May. Could have got it cheaper, but I bought the insurance. Just incase it go's lower (yeah right). Thank god I jumped! Thats for 1000 gal. estimate.
  • A.J.
    A.J. Member Posts: 257
    Fuel oil in central western Pa.

    I just ordered a thousand gallons today at $ 2.35 a gallon and I don't know if I should feal lucky or not, considering what it is going to be in January.
    It's a small oil company that is only delivering on a pay on delivery bases. Do not forget that prices have more than doubled in the last year and so have alot of these smaller copmanies AR.

    Kupetz's Plb & Htg
  • Steve Ebels_3
    Steve Ebels_3 Member Posts: 1,291
    Was That for a specific amount?

    If you are able to buy as much as you want at that price, I think I'd recommend getting some more storage capacity installed and topping everything off right after Christmas.
  • Mark Hunt
    Mark Hunt Member Posts: 4,909
    It will be

    close to if not over $4/gal in January.

    Small companies burn through their stock pretty quick since they can't afford to buy HUGE quantities like the big boys do. The big boys burn through their stock just as fast due to a larger customer base, but they can afford to buy HUGE amounts compared to the small company.

    Problem is that he small guy hopes to seal a larger customer base by floating lower prices. The problem here is that before the small company realizes it, they are selling oil for less than what they paid for it. They do not have the ability to take a hit like that and soon they are gone. Pretty soon there will be only a few companies that will be WILLING to sell heating oil. The rest will be bought up by CONSOLIDATORS!!!!!!!!

    Mark H

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  • George_10
    George_10 Member Posts: 580
    Smart small operators can hedge their prices

    in the futures market. There are future brokers who specialize in hedging prices of all commodities. Oil is just one of many. Those that had the forsight to do this will be fine. Those that gambled and hoped may be in for some very rough times and along with their customer base.

    No doubt about it there will be a rash of bankruptcies as a fall out from this disaster. The national impact of this calamity is just beginning to ripple through our economy and it will get far worse, before it gets better.
  • Paul Pollets
    Paul Pollets Member Posts: 3,656
    Just filled up...

    #2 at $2.59/gal in Seattle. I'd agree we may see $4./gal by dead winter.

    Ouch!!

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  • Dan Goodridge
    Dan Goodridge Member Posts: 62


    Mark Hunt.

    I think that you should keep twisting those wrenches instead of speculating about fuel oil prices. Today's nymex close for Feb oil was 2.11. Add .08 for transport and you have a wholesale price of $2.20 and a retail of $2.70.


    If the Louisiana refineries come back on line fairly quickly, the price will drop. A mild winter will also send the price of heating oil dropping like a rock.



    The size of the oil company has no bearing on its ability to hedge oil thru a futures contract or its supplier.


    I am a fuel oil dealer in Boston and I will bet you 2 lobster dinners that retail oil does not hit $4 this winter
  • Murph'_5
    Murph'_5 Member Posts: 349
    M Hunt

    loves to bet, but I hear he has a problem with shellfish!!

    (G)

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This discussion has been closed.