Written on: October 12, 2021
With unexpectedly higher demand and devastating hurricanes harming production, oil prices have just recently reached their highest mark in the last three years. Analysts predict that a cold winter—along with a surge of travel over the holiday season—should only increase prices even higher.
In fact, oil prices have risen about 10% over the past month alone as Hurricanes Ida and Nicholas ripped through the Southeast and stopped production in the Gulf of Mexico—as well as Louisiana—for weeks. The shutdowns canceled the impact of modest production spikes from international suppliers this summer. Analysts from Goldman Sachs called Ida the “most bullish hurricane” for oil prices in U.S. history.
Homeowners who bank on propane for heating could face the most expensive winter in years, as more spikes are expected. Propane prices have risen almost 60% this year in Mont Belvieu, Texas, the key U.S. trading hub, in the face of high overseas demand and less production.
Higher exports and the spike in demand from petrochemical producers are making it more difficult for propane suppliers to replenish their stockpiles as winter approaches. The inventories of propane are about 20% under the five-year autumn average, according to data from the Energy Information Administration.
If you’re a customer who owns their tank outright—and traditionally phones in their order when you notice your gauges are low—it might be time for you to reexamine delivery schedules for this winter, and to also replenish your tanks as soon as possible. Pico Propane and Fuels’ Keep-Full automatic delivery puts you on a controllable schedule that enables better prediction of costs of your home heating fuel, allowing for more efficient budgeting.
When you’re a Keep-Full customer, you know when and how much of your fuel is on the way. Also, your delivery costs are made much more consistent, you don’t have to shell out extra service fees, and you will know your typical usage—all of which enable better planning.
At Pico Propane and Fuels, we do our best to keep our propane prices as low as possible. One way we do that is by ensuring a reliable supply of propane, so we are not caught short and need to buy a lot of propane when prices spike upward. Here are some of the ways that we do this.
Additionally, if you ever find yourself struggling to pay your Pico Propane and Fuels bill, we’re here to help. Get in touch with us quickly so we can help you come up with a solution. Our region also has low-income energy assistance (LIHEAP) programs available. Don’t let fear or pride stop you from making sure you and your family are warm, safe, and comfortable this winter.
Call us today for your next fill-up—we’ll get you familiar with our available options regarding billing, delivery, and additional heating system services!