So far, 2015 has seen oil prices plunge significantly against 2014 prices and lows of around $45 per barrel were reached in January 2015. Oil Prices then stabilised at around $55 – 60 per barrel from February – May 2015. Since then however, prices have been declining again and at the time of writing are just below $45 per barrel – 6 ½ year lows.
These lower prices are great news for our customers, who have become accustomed over the past number of years to paying over £300 for 500 litres of oil, putting substantial strain on household budgets. The average UK price for 500 litres is currently around £170 making purchases more manageable.
What is driving the oil price down?
A global surplus of oil has been created due to slowing demand in China, fracking in the US becoming financially viable at lower prices, OPEC (namely Saudi Arabia) refusing to lower their daily output and the potential for more oil to be on the market in the near future, after a deal was struck with Iran.
Could oil prices hit $30 per barrel?
The oil market as you may know is particularly volatile and prices will fluctuate daily. Keep an eye on the news for developments in China as this may play a key role in influencing oil prices.
According to Fuel Prices Online, “The recent drop in the price of oil confirms the global commitment producers have to their current levels of high output. Could we see $30 oil in the next 15 months? Absolutely, and headlines like China’s recent yuan devaluation and the prospect of sanctions on Iran being lifted will only contribute to such volatility. If prices do begin to rise, the recovery in prices from a six-year low may be short-lived as the U.S. enters the slow demand period in September.
We hope to see prices continue to fall lower, as this is good news for all. You can make even further savings on heating bills by turning down thermostats, improving insulation levels, upgrading to eco heat additive, buying in larger volumes as the pence per litre normally falls with higher order volumes. If you need any further information on oil prices, visit our Oil Prices Page. If you would like to contact us, please use our live chat facility, or visit our contact page for telephone number and email contact.