Scary Chart Time: Oil Price Trends

By Luke Wonnell

For those of you who are considering an oil-to-gas conversion for your building’s boiler system, let’s take a look at the commodity price for a barrel of crude oil over the past 12 months – that’s right, it’s scary chart time!

Source: http://markets.businessinsider.com/commodities/oil-price?type=wti

The current $70+/barrel is 67% higher than mid 2017 when the commodity price was closer to $43/barrel.  Now, let’s see the trends over the past 3 years:

Source: http://markets.businessinsider.com/commodities/oil-price?type=wti

Although crude oil is still relatively cheap compared to the 2013-2014 prices which exceeded $100/barrel, the recent trends are definitely going in the wrong directions for the upcoming heating season.  Now, possibly for the first time ever, we’re going to show you the month-by-month equivalent price of a “barrel” of No. 2 heating oil (42 Gallons)… that’s just the type of service we like to provide for you here at The Metro Group.

Source: https://www.nyserda.ny.gov/Researchers-and-Policymakers/Energy-Prices/Home-Heating-Oil/Monthly-Average-Home-Heating-Oil-Prices

Since No. 2 and No. 4 heating oils are products of the crude oil refining process, the equivalent price per barrel is considerably higher than a barrel of crude oil (nearly double!).  Most buildings will benefit from keeping their fuel oil tank in place for backup or “interruptible” use, but it may be time to consider converting your boiler system to use Natural Gas as the primary fuel source in advance of the 2018-2019 heating season.

Call your Account Manager today to schedule a site assessment and see if you’re a good candidate for a gas conversion!

Sources:

http://markets.businessinsider.com/commodities/oil-price?type=wti

https://www.nyserda.ny.gov/Researchers-and-Policymakers/Energy-Prices/Home-Heating-Oil/Monthly-Average-Home-Heating-Oil-Prices