Here are Four Reasons Why Oil Prices Increase in Pennsylvania
Everyone thinks they know the reasons why oil prices increase. You might firmly be on the side that blames the government for rising oil and gas prices. But really, the reasons why oil prices increase are really more complicated than that. There is a long list of reasons why home heating oil prices have increased recently. Skotek Oil Sales can help you handle the cost of oil with our budget plans and automatic delivery.
In this month’s blog, Skotek Oil Sales is taking a closer look at four reasons for increased oil prices. Some of the reasons include:
- Global Market Influence
- World Upheaval
- Supply and Demand
- Winter Weather
Global Market Influence Causes Price Increases
Global market influence is a big reason why oil prices increase. The fact is oil companies produce heating oil from crude oil, which is a globally traded commodity. Crude oil prices affect heating oil prices in Pennsylvania. That includes our service area of Luzerne County, Schuylkill County and Carbon County. World conflicts involving oil-producing countries affect the cost of oil.
World Upheaval Can Affect Oil Prices in the United States
World upheaval can is a significant reason for oil prices increasing. We are unfortunately experiencing that right now because of the war between Russia and Ukraine. The United States has banned the import of Russian Oil, which has caused higher oil and gas prices. World upheaval internationally can also delay access to oil.
Supply and Demand Can Force Oil Prices Upward
When our oil demands increase sharply, refineries could have problems keeping up with those demands. Long periods of winter weather in Pennsylvania can affect supply and demand. We might see available supplies run out faster than oil companies can replenish them. Oil prices will increase as a result.
Pennsylvania’s Winter Weather Affects Oil Usage
Winter weather is a big reason why oil prices can increase. Pennsylvania homes consume large amounts of heating oil, particularly when in colder weather. When oil usage increases, prices of oil can increase. In warmer winters, heating oil costs can fall. Winter weather in Luzerne County, Schuylkill County and Carbon County can be very cold. Unfortunately, homeowners and landlords pay the price for that. Customers can rest assured that Skotek Oil Sales will have competitive prices.