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What's Behind the Spike in Heating Oil Prices

Wednesday, February 12, 2014

The frigid temperatures this winter have sent the price of fuel soaring. But heating oil businesses aren't celebrating fat profits. Instead they've been struggling to deal with bottlenecks caused by a sharp spike in demand.

“My terminals where trucks load were overwhelmed. They were grabbing any barge in the harbor and loading them at the dock facilities,” said Vincent Allegretti, who runs Bayside Fuel Oil Depot Corporation, which has three harborside locations in Brooklyn.

Allegretti doesn’t fault the weather, exactly. He blames thousands of building operators who switch from gas to oil heat when the temperature drops, creating “artificial demand.”

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Comments [3]

Bob from Mahopac

I've got solar cells & they do me no good when they are snow covered.

Feb. 13 2014 02:36 PM
Truth & Beauty from Brooklyn

Greed.

Combined, of course, with supply and demand. The colder it is, the more oil we need to heat and the more the suppliers can raise the prices because they know we have no choice. And, of course, there are delivery issues when the roads are bad and they charge more for that, too.

Best bet? Photovoltaic cells on the roof leading to a battery into which you can plug electric heaters. :-)

Feb. 13 2014 11:35 AM
Isis from New York

Greed. That what it is, pure and simple.

Feb. 13 2014 08:57 AM

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