The Rise and Rise of Oil Prices: Why It’s Happening and How to Budget For It

Just when you thought oil prices had to drop, it looks as though they’ll be soaring even higher in the second half of 2015. Thankfully, there are some oil suppliers who not only offer excellent oil prices, but who also suggest excellent budgeting options, ensuring families won’t get hit by outrageous bills when the colder months hit.

The Price Hike Reason #1 – Geopolitics

As always with oil, it comes down to global events. The number of rigs drilling in the USA has fallen sharply over the last five months, and this is unlikely to change in the months to come. Simultaneously, Saudi Arabia and Iraq are flooding the market with their own oil. Combined with this is Libya’s descent into a war-torn disaster-zone, reducing crude production to a mere 500,000 barrels per day.

The Price Hike Reason #2 – Increased Demand

Americans love their cars and they’re using them more in 2015 than they have in recent years. At the same time, the numbers of Chinese entering the middle class continues to grow, meaning increased oil consumption and more cars. With such large countries demanding so much oil, prices will naturally go through the roof.

Budgeting Your Heating Bills

Unfortunately, your home-heating expenses aren’t immune to oil shocks and international demand, so your safest option is to choose a heating oil supplier that will create a budget with you. A good oil supplier will allow you to estimate your annual oil usage and set up a Direct Debit part way through the month. The money goes out in manageable monthly payments, and your account is reviewed to ensure you’re paying the right amount. In a world of turmoil, choosing an oil supplier who offers this service is a wise move indeed.