OFTEC have revealed new statistics showing that sales of oil boilers are up 13% on 2015, making this year on course to be the best since 2007.
OFTEC says that the sustained low price of oil has undoubtedly been the most significant contributory factor.
Typical GB annual fuel costs for owners of condensing boiler’s fell from a high of £1431pa in April 2013, to a low of £690pa in April 2016.
Still the cheapest
Since the spring of 2016, the price of Brent crude oil has crept up from around $25 – $35 a barrel to close to $50 a barrel.
This price rise has also seen the price of kerosene creep up too, reflected in two quarters of modest increases.
Despite this price rise, oil is still the cheapest major domestic heating fuel by quite a long way (at the time of writing).
October 2016 comparative space and water heating costs for a 3 bedroom house in the UK.(Data from the Sutherland Tables)
- Electricity storage heaters (Economy 7) – £1573
- Air Source Heat Pump – £1441
- LPG (condensing) – £1439
- Wood Pellets (1 Tonnes) – £1275
- Anthracite Grains (50kg) – £1127
- Gas (condensing) – £943
- Oil (condensing) – £809
After a period where oil prices looked to be staying low, OFTEC now believe that prices may increase further over the next year.
An OPEC meeting taking place the week of the 28th November 2016, may have resulted in an agreement to reduce supply, although many commentators believe that any fall in production will simply be met by an increase in output by US shale oil producers.
Looking further ahead, many believe the reduction in spending on oil exploration and investment, due to the low price, may lead to a drop in availability and contribute to higher prices in the medium to long term.