Before the price of oil rebounds to the highs seen this summer, talk to your heating oil provider to lock in a rate for the winter. Securing a rate early can help save a lot of money if the price of oil goes up over the course of the next few months.According to a WBZ-TV report, the average price of a gallon of oil in mid-September was around $3.80, but in the first few days of the month, it had reached as high as $4.62.
Even a few cents can make a big difference because of the large amount of oil many homeowners mustbuy to heat their houses each winter.
"It's certainly the lowest we've seen in a few months time," Michael Ferrante, president of the Massachusetts Oilheat Council said to WBZ-TV about the price of home heating oil.
Late September, however, can be a tricky time to buy because of the potential for large swings in the price of oil due to the potential for severe weather such as hurricanes. Concern over damage to oil processing machinery along the Gulf Coast was considered at least partly responsible for the rapid price increases in early September.
In addition, if the dollar weakens due to deteriorating economic conditions, oil becomes a more attractive investment. This increase indemand for oil can in turn drive the price up. Now that the price is at a relative low, it's an ideal time to lock in a rate for the winter.
Check out the deals Consumer United has on home energy here. Also, click here for the WBZ-TV report.
--Bridget O'Sullivan
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