The outlook for home heating oil prices is down for a change. The price of oil per barrel has dropped to less than $40.00 a barrel. Compare this to $80.00 per barrel in 2014. You can view a complete history of crude oil price for comparison.
It was as high as $105.00 per barrel in 2013. The highest ever was $145.00, so this is substantially lower. The question is how does that translate to a price per gallon? The latest finding reports 2.36 a gallon as of 11/30/15. However, the price per barrel has dropped again to $39+ per barrel which should lower it further.
The price per gallon will translate into $236.00 per 100 gallons of oil. For an average house, tightly insulated in the northeast or midwest, will probably use approximately 500 gallons or more depending on insulation, how old your furnace is, and how cold the winter will be.
Prices per gallon by location as of 11/30/15 are ranging from $2.02 per gallon in the Midwest to $2.37 per gallon on East Coast. EIA expects heating fuel prices for homes that heat with natural gas, propane, and heating oil to remain lower than prices last winter. Great news for homeowners.
Home heating oil prices are at an all time low. What else can you do to help lower your heating bills? First make sure you have the most energy efficient furnace you can afford. An energy efficient furnace will save you money in the end. At 500 gallons a year usage and $2.36 a gallon that's over one thousand dollars a year for oil. There is a direct correlation between keeping your oil costs down and an energy efficient furnace.
Secondly consider your insulation. The more air tight your home is, the better. There are several things you can do that are relatively inexpensive. Place weather stripping on all doors and windows (very inexpensive) or make sure you have good storm windows.
No storm windows? Buy sheet plastic at a home improvement store and cover all windows. Make sure there is enough insulation in your attic or crawl space. For every layer you put down, you can save money.
Insulation levels are specified by R-Value. "R-Value is a measure of insulation’s ability to resist heat traveling through it. The higher the R-Value the better the thermal performance of the insulation."
Home heating oil prices in the U.S. are down and it appears will continue to drop for the foreseeable future. Oil prices are falling to their lowest in seven years. Homeowners will reap the benefits of low fuel prices combined with fuel efficient furnace's.
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