Heating oil

Heating oil is a petroleum product used by many Americans to heat their homes.

Refineries produce heating oil as a part of the “distillate fuel oil” product family, which includes heating oils and diesel fuel.

Refiners are limited in the amount of heating oil they can make to meet the demands of the winter heating season.  

To produce more heating oil, they would also have to produce more of other petroleum products which could not be sold in sufficient quantities during the winter months.

Although, the demand for heating oil is seasonal, at Gomak inc. we purchase and supply Heating Oil all year round.

Home heating oil prices sometimes can change dramatically in a short period of time. Prices paid by consumers are determined by the cost of crude oil, the cost to produce the product, the cost to market and distribute the product, as well as the profits (sometimes losses) of refiners, wholesalers and dealers).

When crude oil prices are stable, home heating oil prices tend to gradually rise in the winter months when demand is highest. If refiners, wholesalers, dealers and consumers have enough heating oil in storage and temperatures do not drop rapidly, prices hold fairly steady (assuming crude oil prices are also not changing much.

On the other hand, if consumer demand is high for a seasonal product, such as gasoline, refiners may delay producing heating oil for the winter, which may lower inventories at the start of the heating season.

Additionally, during very cold periods, prices of other heating fuels such as natural gas or kerosene may increase even more than heating oil prices. In this case, some consumers may switch from using their normal heating fuel to using heating oil, thereby increasing the demand for heating oil.
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However, a rapid change to colder weather can impact both supply and demand; people want more fuel at the same time that harbors and rivers are frozen or delivery systems are interrupted.

We can surely save a lot of headache, time and money.

Please contact us at info@gomakinc.com or use the Online Form Page for relevant inquiries.