Have you ever wondered why gas prices fluctuate so much? Whether you’re at the pump or trying to stock up on house heating oil before the colder weather hits, it seems as if fuel oil prices just keep rising. To help you gain a better understanding of what’s going on, the experts at Monroe Oil Company in Rochester, NY, list a few of the most common reasons for these price increases below.

3 Reasons Why Fuel Oil Prices Go Up

1. Current Output Supply

The first factor that goes in to determining fuel oil prices is the current output supply that is available. Even though fuel oil is found in many parts of the world, the Organization of the Petroleum Exporting Countries (OPEC) has been limiting the supply of 61 oil producing countries since 1973, putting a cap on much that can be extracted and sold.

2. Projections for Future Supply

Fuel oil isn’t a substance that has infinite quantities, and as such, the supply will eventually run out. While experts have a general idea of how much is left in the oil reserves and can project when that time will be, there is always going to be a certain level of uncertainty. Because the world relies on oil reserves from all over the world, should any of these countries start to have conflicts, it could affect the world’s access and drive up fuel oil prices.

3. Increased Demand

The rise of fuel oil prices can be explained quite easily — supply and demand. Take a moment to think about how many people use fuel oil — many use it as a house heating oil, truck drivers use it in their diesel tanks, and millions of consumers use it daily to get from point A to point B. With a limited supply and an increase in usage around the world, fuel oil prices can only go one way.

Want to learn more about fluctuating fuel oil prices? Contact the professionals at Monroe Oil Company today at (585) 244-4080. You can also visit them online for more information regarding their services.