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PRESS RELEASES
14 August 2008
NIOF responds to oil price drop
The price of home heating oil has fallen by approximately £100 for 900 litres as some certainty returns to the international marketplace. This represents almost a 17% drop in prices since 1st July 2008. David Blevings from the Northern Ireland Oil Federation says: “The retail price of home heating oil is influenced by the cost and availability of crude oil which has been elevated in recent months by strong demand, tight global supplies and geopolitical uncertainties. The good news is that prices are now retreating because of a moderation in demand, especially in the USA. Many pundits are suggesting that a weakening U.S. economy is hurting demand and the strengthening dollar coupled with increasing supply of crude helped push oil prices lower; this is good news for consumers. There will probably be more fluctuations going forwards but consumers can benefit from this reduction prior to the winter, which has to be good news.” “Distributors locally operate in an extremely competitive market and these competitive pressures ensure that price movements on the international market are offered quickly to consumers in order to retain their custom. Consumers in Northern Ireland buy their home heating oil below the average price for both the GB and ROI markets reinforcing the competitive nature of the local oil market, added David.”