Heating Oil $4.39 retail, $4.89 pre-buy...is cord wood also going to go up much?

[rockreid]

I called my heating oil co. yesterday to see about locking in for next year. They told me current retail price was $4.39 delivered and pre-buy for next year was $4.89 (500 gal minimum, full payment due upon initial delivery). My heating oil this past winter was $2.79 lock-in, which was a significant jump from the year before. With heating oil jumping like crazy are wood suppliers going to catch on soon and raise their prices. Rason being I have a cord of wet oak I just set out to air dry (the tree had been blown down for two years, but not cut up) but should I buy cord wood now in case firewood starts climbing up?

 

[Stevebass4]

my log length guy went up $10.00 because of the cost of diesel

 

[JustWood]

YES BUY NOW My fuel supplier won't do pre-buy lock in anymore because of the volitile market. Supply is down and fuel and demand is up, yes I am charging considerably more now than this time last year.

 

[Backwoods Savage]

One thing you can count on for sure: prices will increase, always.

 

[RedRanger]

Wouldn`t common sense dictate that all economics are relevant? Buy all you can and stash all that you can

 

[Cath]

I think we got a taste of that this past Winter (07 - 08). It was a fairly big news story on one of our local TV channels. Some retailers actually ran out of seasoned wood to sell.

And in my area the current prices for wood on Craig's List do not seem to reflect a seasonal discount. I wonder if that will change as the weather gets warmer.
~Cath

 

[JustWood]

I think we got a taste of that this past Winter (07 - 08). It was a fairly big news story on one of our local TV channels. Some retailers actually ran out of seasoned wood to sell.

And in my area the current prices for wood on Craig's List do not seem to reflect a seasonal discount. I wonder if that will change as the weather gets warmer.
~Cath

Whatever the price is now is discount. Wait till after July 1st when the boom time starts and you'll probably pay 20+% more. I'm booked now till mid July and by then I'm wiiling to bet I'll be booked till OCT or NOV. The phone doesn't stop ringing after July 1st

 

[isuphipsi1052]

Just started getting in my wood for next winter. 12 face cords at $65/per face cord. All beech. Seemed like a fair price to me, since I only paid $60 a face cord last year...

 

[Hanko]

Just started getting in my wood for next winter. 12 face cords at $65/per face cord. All beech. Seemed like a fair price to me, since I only paid $60 a face cord last year...

Two years ago i would have had a chit fit paying 65 a face cord, but now with oil as one stated at close to $5 a gallon, I think if you paid $100 a face, the wood would still be a cheaper way to go.

 

[Ken45]

One story I've heard as to why diesel is up so much (and heating oil is basically diesel), is that China is stockpiling diesel for the Olympics and also they need larege amounts for the earthquake rebuilding. I don't know if I believe those excuses.

Actually, I think oil is in a bubble at this point. In the past, we have seen significant price declines. I think we will see some significant retreat. I also read that Iran has tankers full of heavy crude sitting offshore that it can't sell because of lack of refining capacity for heavy crude.

My wife banged up the Jeep yesterday (didn't put it in park, it rolled into the horse trailer), so we are using the truck (diesel dually). I put $99,19 in it last evening and it was only half empty

Ken

 

[Wet1]

I think we got a taste of that this past Winter (07 - 08). It was a fairly big news story on one of our local TV channels. Some retailers actually ran out of seasoned wood to sell.

And in my area the current prices for wood on Craig's List do not seem to reflect a seasonal discount. I wonder if that will change as the weather gets warmer.
~Cath

Whatever the price is now is discount. Wait till after July 1st when the boom time starts and you'll probably pay 20+% more. I'm booked now till mid July and by then I'm wiiling to bet I'll be booked till OCT or NOV. The phone doesn't stop ringing after July 1st

Lee,

May I ask what exactly it is you do (or supply)?

 

[rockreid]

diesel is up so much because diesel fuel is subsidized by European governments and over 50% of cars sold in Europe now are diesels. The European public gets to buy diesel fuel cheaper at the pump than world market prices and the USA actually exports diesel fuel to Europe, limiting the supply here in the USA. Diesel demand is also a good measure of the world economy and right now much of the world economy is booming.

The Iranian tanker reports are true, as I have also read this...so far they have over 20 large tankers moored in a harbor off of one of their islands. I suspect Iran may be using these tankers as a bargaining chip so they will not get bombed. Or, they simply cannot refine their sour crude as you stated and wish to keep crude oil prices high by not sending it to market.

 

[mayhem]

One story I've heard as to why diesel is up so much (and heating oil is basically diesel), is that China is stockpiling diesel for the Olympics and also they need larege amounts for the earthquake rebuilding. I don't know if I believe those excuses.

Actually, I think oil is in a bubble at this point. In the past, we have seen significant price declines. I think we will see some significant retreat. I also read that Iran has tankers full of heavy crude sitting offshore that it can't sell because of lack of refining capacity for heavy crude.

My wife banged up the Jeep yesterday (didn't put it in park, it rolled into the horse trailer), so we are using the truck (diesel dually). I put $99,19 in it last evening and it was only half empty

Ken

Heating oil and deisel were already way, way up well before the quake in China.

I just called for my springtime fillup of the oil tank...we're at $4.589 a gallon for heating oil today...fillup is Tuesday and today's price is not necessarily Tuesday's price. The last time I filled the tank it was $3.499 the day I called and $3.619 the day I filled it.

 

[begreen]

Diesel fuel is taxed at a lower rate in some European countries, not all. For comparison, diesel is currently running at almost $10/gal in England. Diesel in SE Asia is highly subsidized. In China, the oil refiners were told they can't raise prices on domestically produced fuel to meet inflation or higher drilling costs. So they started importing. From last April to this, China's diesel imports have risen over 700%!

 

[begreen]

Here's an interesting related graphic that shows a visual representation of gasoline prices across the country. Note that proximity to refinery does not necessarily correlate to price. Hmmm.

http://www.gasbuddy.com/gb_gastemperaturemap.aspx

 

[iskiatomic]

I guess I should feel good about paying $1.99 about 3-4 weeks ago. that was my winter and domestic hot water fill up. Should last until around May if all goes as planned.

Now, I just kick back and look at my 15 cords of money (heat) in the backyard.


KC

 

[Cluttermagnet]

I was quoted somewhere around 5 dollars a gallon back then (this thread begins in May 2008). Minimum delivery was 150+ gallons. That's when I knew it was time to turn to full time wood burning. So I did, and I'm not looking back. Even at 2.00 a gallon I'm not interested. All the effort I put into acquiring, processing, and seasoning are well worth it. It's not exactly free- I do have to pay for some gas, oil, and maintenance, but I'm still shelling out way less cash for heat. Yes, my time is worth something, but I need the exercise. If No. 2 went to 1.00 a gallon, I'd probably still burn wood.

 

[ohio woodburner]

Here's an interesting related graphic that shows a visual representation of gasoline prices across the country. Note that proximity to refinery does not necessarily correlate to price. Hmmm.

http://www.gasbuddy.com/gb_gastemperaturemap.aspx

Green your exactly right. I live within 30 miles of two refineries, the farther i drive away from them the cheaper the gas. Go figure

 

[Backwoods Savage]

I was quoted somewhere around 5 dollars a gallon back then (this thread begins in May 2008). Minimum delivery was 150+ gallons. That's when I knew it was time to turn to full time wood burning. So I did, and I'm not looking back. Even at 2.00 a gallon I'm not interested. All the effort I put into acquiring, processing, and seasoning are well worth it. It's not exactly free- I do have to pay for some gas, oil, and maintenance, but I'm still shelling out way less cash for heat. Yes, my time is worth something, but I need the exercise. If No. 2 went to 1.00 a gallon, I'd probably still burn wood.

You have your thinking right Cluttermagnet.

As for the work, it is all best done during the winter months. When you think of what happens year after year with folks going on diets, joining exercise clubs, etc. then compare that to us folks out there cutting and splitting firewood....well, what is to compare?

We don't pay any dues to go somewhere to exercise (but don't get to see many skimpy outfits either), but we are outdoors in the fresh air doing exercise that is much more enjoyable than an aerobic exercise done inside a gym.

To top it all off, we get to stay warm when we are sitting in out houses.