Cheap Oil Prices…How Long Will it Last?

There’s no doubt about it, oil prices in the UK and Northern Ireland have dropped to remarkably low prices much to the pleasure of those who rely on oil to heat their homes.

The abrupt drop in fuel price in the UK took virtually everyone by surprise, even the most seasoned fuel forecasters. Now, the big question is: will the oil prices remain low, or will they gradually creep upwards once more?

Soaring oil prices NI & UK?

The cynics among us agree that the drop in fuel price can only be a temporary thing. After all, historically, oil prices have always fluctuated, and a rise after a fall in price must surely be an inevitability.

Not so, according to some experts. Mohamed A El-Erian from Bloomberg View, dares to contradict this opinion. Rather than seeing the lowered price of oil as a natural part of fuel fluctuation, he states that the world as a whole is experiencing a ‘fundamental shift’. The well-established supply model is being challenged, and changing mind-sets towards the supply of oil are likely to have ‘long-lasting effects’.

Falling fuel prices UK… the reason?

There are several contributing factors to this seismic shift in the oil market, but the main change is coming from Saudi Arabia; who are now no longer content to artificially limit their oil supply in order to support inflated prices. Doing so in the past has actually cost the country significant market share, and they are not willing to run the risk of losing out again.

The effect of this? Low prices, according to El-Erian, will close down unprofitable oil fields, not to mention other forms of energy supply. Whilst prices are low, demand will increase, resulting in an extended period of time where low oil prices can be enjoyed.

Inevitable return

El-Erian, despite his optimistic predictions for the price of oil, acknowledges that in the end, prices must surely rise again; though he anticipates there will be an extended period of lower rates for cheapest heating oil system owners across NI and the UK. However, these strange times won’t come without considerable shake-up. Importing countries will benefit from the change. Exporters, such as Iraq, Nigeria and Russia, will not. In short, big changes are afoot, and it’s anybody’s guess as to what the outcome will be.

Low oil prices NI – cashing in

The official advice at present is to make the most of the low oil prices whilst you can. Whilst they may continue to be low for a while yet, the bottom line is that there is no guarantee. Oil is a market in a continual state of ebb and flow, and even the experts struggle to predict exactly what will happen to prices in the future.

Low oil prices at Value Oils

If you want to benefit from the low fuel prices at present, get in touch with the Value Oils team today. We always ensure that our prices are in line with wholesale rates. If the wholesale rate comes down, we’ll guarantee to pass the savings on to you, without exception. To find out more, simply visit the site.

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We provide a wide range of services from boiler cleaning to oil spill clean-up and gas boiler servicing. We can easily help you with all your oil needs by visiting us at: http://www.valueoils.com