| Refining petroleum or crude oil produces heating oil. | | | | This is because consumption of heating oil rises as it |
| Residential use for heating accounts for most heating | | | | becomes colder. Extremely harsh weather conditions |
| oil consumption; close to 8 percent of American | | | | may also have an adverse impact on supply routes. |
| homes use heating oil.Like gasoline and diesel prices, | | | | Thus, if a part of the country experiences an unusually |
| heating oil prices depend to a large extent on the | | | | mild winter, heating oil prices may be reasonable. |
| supply and price of crude oil. If there is too much crude | | | | However, if winter is harsh, prices can rise quite |
| oil available in the marketplace, oil prices, including | | | | dramatically. Another reason for higher heating oil |
| heating oil prices, fall. A crude oil supply shortage, alone | | | | costs is the high cost of transportation to more remote |
| or combined with increased demand for crude oil | | | | homes.Many oil suppliers offer fixed price schemes to |
| products, drives heating oil prices up. Local market | | | | help consumers control the costs of using heating oil. |
| factors also affect the price of heating oil. If a heating | | | | Installing better insulation can also keep heating costs |
| oil supplier sets its prices too high, consumers may | | | | down. For lower-income families, there are some |
| switch to another supplier. When enough revenues are | | | | federal, state and supplier-supported programs to |
| lost from customers who leave, the supplier will be | | | | make heating oil more affordable. Some consumers |
| under pressure bring prices more in line with those | | | | try and avoid seasonal increases in heating oil prices |
| offered by competitors.Heating oil prices tend to go up | | | | by filling their tanks during the summer months, when |
| seasonally, with prices being highest during the winter. | | | | prices are lower. |