Q:

What affects the prices of heating oil for a furnace?

A:

Quick Answer

Factors that affect the prices of heating oil of a furnace include changes in crude oil prices, seasonality in demand, competition in local markets and regional operation costs. A rapid change in wintry weather can impact the demand and supply of heating oil.

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What affects the prices of heating oil for a furnace?
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Full Answer

Fuel prices tend to rise in the winter when demand is high, and the crude oil prices are stable. Crude is a major component of heating oil, so if its price changes, the price of heating oil changes as well. A large number of competitors in a local market can cause a reduction in the prices of heating oil. Remote areas may have higher prices due to the fewer competitors serving their smaller markets. High costs of transporting the oil also impact the prices.

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