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Best to Sign Annual Oil Contract in June-July?

D107
D107 Member Posts: 1,775
edited March 2018 in Oil Heating
Looking at annual oil prices, seems lowest price is around June-July every year. Wouldn't it be wise to change from an annual nov to nov period to one that starts in summer? Assuming the oil co would permit you to make that switch. (This would be for a fixed price account.)

Comments

  • STEVEusaPA
    STEVEusaPA Member Posts: 5,177
    David107 said:

    Looking at annual oil prices, seems lowest price is around June-July every year. Wouldn't it be wise to change from an annual nov to nov period to one that starts in summer? Assuming the oil co would permit you to make that switch. (This would be for a fixed price account.)

    They're not always cheaper in the summer. No one can predict oil prices. If they could they would be wealthy and you would never hear of them.
    That being said, the best thing about oil contracts is that is locks you into the oil company, and you pay a fee for the privilege.
    I've never sold contracts. I've beat the price companies offer for lock-ins 7 out of the last 10 years. That means people who locked in for the last 10 years over paid. Especially 3-4 years ago when people were locked in for $3.80/g when the price dropped down to the low $2's.
    You're area may be different.
    steve
    D107
  • D107
    D107 Member Posts: 1,775
    edited April 2018
    Yes in 2015-16 oil did go down in the winter but on LI--where prices are high, I think the lock-in price has generally been a benefit at the family house. The oil co. usually offers a price 20-30¢ below the NYSERDA 'average' price for that week. When we signed 'average' price was around $2.99; we locked in at $2.74 and now it's $3.31. Of course there's a $60 lock-in fee too. Looking at NYSERDA prices for last two years, they generally seem to go up in fall. Political events and cold spells certainly play a part, plus any issues with refineries etc.