Heating Oil Users set to benefit from Price Stability in 2009, says OFTEC

10th January 2009
The Oil Firing Technical Association (OFTEC) is predicting that home heating oil customers across the British Isles, will continue to benefit from relatively low crude oil prices during 2009.

OFTEC recently commissioned the UK's leading independent energy consultancy EIC to forecast crude oil prices for the year ahead. OFTEC expects that recessionary pressures will continue to keep crude oil prices between US$40 and US$60 per barrel during 2009, compared with highs of US$150 during 2008. The result should be relatively price stability for heating oil customers and prices significantly below the peaks experienced during 2008.

David Blevings from OFTEC in Northern Ireland and the Republic of Ireland commented, "Retail home heat prices have fallen by almost 50% since July 08 which is welcome news for over 70% of homeowners in Northern Ireland using oil and will greatly assist reduce household expenditure at this difficult time".

"America and China have indicated that they will take advantage of the current price level to restock their strategic reserves and this additional demand coupled with the current tension in the Middle East and colder weather will give a short term lift in price but the medium term forecast looks optimistic and homeowners can look forward to more stable prices during the Spring and beyond" added David.

According to Heating Oil Price Comparison website BoilerJuice.com, heating oil prices peaked in July 2008 with a price of 64p per litre. However, following reductions in the price of crude oil and kerosene over recent months, prices have settled around 41p per litre.

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Article Last Updated 10th January 2009
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