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How does OPEC affect heating oil prices?
Who is OPEC?
OPEC stands for The Organisation of The Petroleum Exporting Countries and is an intergovernmental organisation. They produce oil for 40% of the world, these members discuss whether oil production should be increased or decreased dependant on global demand and oil reserves. For those who buy heating oil, AGA oil or Red diesel their decision may affect you as it can impact heating oil prices. OPEC was founded in 1960 and is made up of 14 nations.
The members include:
Algeria
Angola
Ecuador
Equatorial Guinea
Gabon
Iran
Iraq
Kuwait
Libya
Nigeria
Qatar
Saudi Arabia
United Arab Emirates
Venezuela
Why do OPEC decisions affect people on heating oil?
As OPEC and oil prices go hand in hand, any of their decisions can fluctuate heating oil prices. If OPEC makes the decision to increase oil production, oil prices tend to drop but if OPEC decides in their meeting to cut oil production, heating oil prices usually increase.
It’s wise as a heating oil user to keep an eye on OPEC announcements and upcoming meeting dates on their website https://www.opec.org/, as if your looking to top up heating oil prices can rise or drop dramatically after meetings. No one wants to get caught out by paying more to heat their homes!
To help you stay in the know, there are heating oil price charts or emails alerts available that can inform you on what’s going with oil prices to help make the decision on the best time to buy your oil.
