Prix du mazout de chauffage – Oil for heating has a very erratic price. It goes up or down steadily. If we take the swings over the previous three years, for instance, we can see that the official price of fuel oil has fluctuated between 0.5171 euros per litre (January 2015) and 0.9456 euros per litre (October 2012) for at least 2000L of heating oil.
The price of crude oil determines the cost of heating oil
The fluctuation of heating oil prices is closely related to the fluctuation of oil barrel prices on the world markets.
Compared to other petroleum-derived fuels, the evolution of the ultimate price of fuel oil is less influenced by public levies like taxes, excise fees, and other contributions, which are frequently measured in absolute value.
Because of this, heating oil prices are more erratic than fuel prices at the pump.
Heating oil prices are influenced by oil supply and demand
Crude oil’s price development is influenced by how it is priced on global markets. The well-known rule of supply and demand plays a major role in how much it swings in price.
The price of oil rises if demand for oil rises without a corresponding increase in supply. In contrast, the price drops if supply outpaces demand. In addition to supply and demand, speculators who view crude oil as a fantastic opportunity to try to make money, whether prices move up or down, play a significant role in determining the price of crude oil on global markets. decrease.
The geopolitical environment affects how much heating oil costs
As a strategic resource for states, oil pricing is significantly influenced by the geopolitical environment. Political unrest in certain oil-consuming nations and certain oil-producing regions may have an impact on how the price of oil changes.
Numerous other elements are involved, including:
- the finding of fresh oil fields
- the use or development of new energy sources, either fossil or non-fossil, as, for instance, shale gas
- Governmental incentives in favour of using alternative energy sources
The price of heating oil has been influenced by the dollar and the euro
Given that the crude oil product is bought and sold in dollars, any change in the euro’s value relative to the dollar has an impact on how much heating oil ultimately sells for in Belgium.
For everything else, the official price of heating oil is fixed each working day by the Belgian State, specifically the Federal Public Service Economy, taking into account these and other criteria.
Can we forecast how the price of heating oil will change?
The topic inspires experts and pundits from all around the world. It is however challenging to forecast how oil prices will change in three or six months due to the sheer number of variables that can affect the price.
To create one’s own opinion, one can, at most, rely on indicators obtained by routinely reading the news, listening to analyst opinions—which can occasionally differ from one another—and reading the viewpoints presented by national or international agencies. It should be kept in mind that any projection could be thrown into doubt by a large occurrence, such a bad geopolitical situation.