What’s with High Oil Prices Lately?

Residents of New Jersey are most likely feeling the pressure of high oil prices lately, however thankful that it’s not currently heating season. Fortunately, there’s some good news – heating costs may be high right now, but historically spikes in price like this are always followed eventually by drops in the cost of oil. While prices have stayed steadily high since March, we can only hope that they will go down soon.

Why Are Oil Prices So High Right Now?

The costs of heating oil have skyrocketed to record breaking highs this year, to the point where prices are the highest that they have been in years. Heating oil prices are high right now as a result of global unrest especially in the East, supply and demand imbalances, as well as the ongoing pandemic. The result has been a disproportionate high spike in oil costs in recent months. Families throughout the United States are currently all feeling the strain of these record-breaking high prices.

One reason the cost of oil is so high is Americans’ return to normal travel. During COVID-19, oil prices hit lows because no one was traveling as a result of pandemic restrictions. However, now consumers who missed out on traveling and other normal activities during 2020 – 2021, are making up for lost time, yet oil production takes much longer to restart than oil consumption. This supply and demand imbalance is resulting in higher prices across the board for oil in every facet.

The Foreseeable Future

Analysts believe oil and gasoline prices will remain to be volatile for the foreseeable future, as inconvenient and discouraging as that sounds. However, thankfully, heating season, the season when you’ll need to buy oil in bulk is months away, and we have time to wait for prices to fall again before the cold sets in. At Woolley, we’re right here with you in hoping prices drop soon. Having been in business for years, we’ve successfully navigated our fair share of highs and lows of oil price fluctuations throughout our time in business. If you need anything from us during this difficult time, don’t hesitate to reach out. Our priority is to help make you as comfortable as possible as we navigate this situation together.