By Joseph Palumbo III
The price of oil is dropping. The rules of the game are changing for Queens homeowners as to whether or not they should lock in their winter oil prices. Many heating companies are offering deals that will let you lock in the price of oil ahead of time so you do not get high heating bills this winter if the price of oil goes up.
I have spoken with oil companies willing to go as low as $2.99 on a lock−in rate from the usual $3.29 to $3.49. There is a huge downside to locking in on oil pricing this winter. Contact your local oil company because almost every oil company I spoke with offers special programs that let consumers either lock in prices in advance or spread out payments over the year.
Some oil companies offer the choice of paying the lower price now because the price is fluctuating south with the option to lock in as the winter season progresses on an oil delivery basis.
So let us say that this December the price of oil per barrel stays at $50. You would not want to lock in. In January, however, the price starts to skyrocket back to $75 per barrel. At that point, you would have the option to lock in your price.
When speaking to your oil company, make certain you are not going to be penalized for not using enough oil. Call at least three oil companies to work on getting the best deal to fit your budget. In this economy, you can work out a favorable deal for your wallet.
So How’s Business regarding locking in your winter oil prices this season? The hurricane season is behind us, which is good in terms of keeping oil prices low. Oil companies are in it to show a profit. The fact that many of the companies I spoke with are willing to negotiate a low lock−in price tells me that oil prices are headed down. Locking in prematurely might wind up being a bad financial move that may cost you money.
Reach Joe Palumbo at 516−248−0256 or info@camelotlimo.com.
