NEW HAVEN, Conn. (WTNH) – Jennifer Tracey-Carlo, owner of Tracey and Son Fuel Oils in New Haven, is selling heating oil to her customers at rates she hasn’t seen in years and her clients are rejoicing.
“Its the same customer base, we just have much happier customers,” said Jennifer.
Jennifer is able to sell her heating oil for less because the cost of a barrel of crude is down, way down. Friday, the closing market price was less than $30. The last time numbers were this low was back in 2003. The fall in value can be explained by looking at the current state of global oil production. Simply put there’s a lot of oil being pumped out right now.
Wentworth Boynton, finance professor at the University of New Haven, says if you’re able to find a heating oil company that will still let you lock in rates, it may not be a bad idea to consider locking in now, but whatever you decide, he adds, be consistent.
“On average they probably wouldn’t gain more by locking in or not locking in but I think there is a comfort level of being on budget and knowing what your expenses are,” said Boynton.
But Jennifer cautions locking in a price might be hard to find this time of year. Most oil companies she says required people lock in the rates months ago.
“I think people should sit back and enjoy this ride and save money,” said Jennifer.
If you think cheaper oil means heating companies are selling more of it think again. Jennifer told us because Connecticut has had so much warm weather this winter season people are actually buying less. Business she estimates for her company is down 40 percent.