Heating Oil is a distillate extracted from crude oil through a process of liquid separation.
Commonly called “cracking”, this process involves putting crude oil through a refining and heating which separates it into different fuel densities. Heating oil is one of these, and because it is a product of crude oil, the price of crude has a direct affect on the production and distribution costs of the home heating oil you end up receiving.
So, if the price of crude changes so does the approach of the home heating oil producers and distributors.
For the reasons mentioned above the price of home heating oil stays roughly proportional to crude. All refiners need to purchase raw crude oil on the open market – meaning this cost will directly influence the price they charge for refining the home heating oil.