Prices have jumped since December 18th. Although there is still a huge oversupply of oil and low demand by the developed countries, such that refiners are closing refineries, speculators are betting on increased demand by the developing countries and recovery in the US "down the road". In the words of one analyst, speculators are betting that "every Chinese worker is about to trade in his Schwinn bicycle for a Cadillac Escalade" and that the day after tomorrow, most US workers will be back on the job.
Oil futures for 2011 are in the $2.36 range today (NYNEX cost only), not including freight, differential and dealer margin). These prices are very high compared to current supply on hand. So we are back to mixed feelings about the market. If prices seem reasonable for next year we would want to buy early in February as we did last year ($1.98, $1.99, $2.11 early Fixed Price programs except for Irving who declined to pre-buy in February).
As always, your best option is to sign up before the end of January. That way if prices break and we do a Fixed Price option, you are on board. Dealers will only accept paid up members for the fixed price option, whether pre-buy, budget or Net 30. Note: Irving has tentatively agreed to go along with and early Fixed Price program if other dealers do so. However, if Irving does not provide an early Fixed Price program (assuming that we feel conditions warrant it), we will break tradition and allow Irving members to use other dealers if other dealers in their area are offering such a program.
We finally finished the Auto Renewal program, by the way, If you click on that option, it will automatically sign you up and charge your credit card every January until you cancel it. A time saver and a hedge against forgetfulness.
We will be evaluating the market every day from this point forward. for those of you who like to follow the details, here are some articles pro and con on oil price predictions. Click to read:
OIL PRICES WILL BE LOWER
OIL PRICES WILL BE HIGHER
NO CHANGE IN PRICE
And an interesting article regarding the elephant in the closet:
January 2011 Options Chart
Followers
Blog Archive
About Me
- Our
- Our Town Energy Alliance was founded in November, 1999 by the Barraford's as a community service for senior citizens. Those 74 members told all their friends and neighbors and we had almost 1000 members by the end of 1999. In 2000, we made the organization independent. From the 74 original members it’s grown to its present 2010 membership of 17000 plus households, schools, towns and businesses through “word of mouth” OTCC members pay an annual membership fee (starting at only $25 per year) and can then take advantage of significant discounts on services and fuel purchases. Our Town Energy Alliance gathers this information from all of our members and uses that volume buying power to secure discounted fuel rates from leading area fuel providers including Irving Oil, Eastern Oil and Propane, as well as other fuel providers. Once the fuel prices are secured, we notify members of the prices. They can take advantage of purchasing their fuel at the discount rate directly from the fuel provider. But they are not obligated to accept the bid price. To take advantage of the program, you must sign a contract with the dealer.