Oil has gone above $51 a barrel and may be continuing upward. Yesterday it hit the highest pricing level for the last past half a year. This last spike had geopolitical causes and supply expectations written all over it. In particular, the Kurds in Iraq had cut back production by about a third of a million barrels per day (generally they put out a half million a day). Adding to this reduction a general concern over the recent allies of Iraq and Kurdistan now possibly squaring off against each other, the markets are somewhat jittery.
In generally, when looking over the last half decade or so it seems the markets have been taking hi’s and low’s and not rocking over. It was just a little more than 6 yeas ago when oil hit a high of almost $115 a barrel; and then in early 2016 it was down to $26 a barrel (at the beginning of the year it was $54 a barrel). So with all the instability in Iraq since 2011 we have seen some fairly dramatic price ranges percentage wise. Yet it hasn’t just been Iraq which has effected prices obviously. OPEC’s moves the past couple years in changing their output supply has had an effect also. In addition the destabilization of Venezuela in the Southern Hemisphere has most likely effected prices as well.
For those buying bulk fuel, what has been the changes you have seen in #2 (or #1) diesel for heating fuel? If you get regular deliveries, take a look back on your receipts and see how much they have changed. Right now #1 is just over $2 a gallon. Have you seen the general trends in your overall deliveries over that past half decade as are reflected above for the fuel oil derivative?