Pellet prices are insane,at these prices oil looks attractive

[bke7]

Just looked at the local distributors website, pre buys for high grade pellets average 335 to 350 a ton.
With the retail price for next season at 350 to 375 a ton. The exact pellets I bought 2 seasons ago have gone up almost 100 a ton. Come on a 30% increase in two years
Now I have to say I like my distributor and have been willing to pay a slightly higher price for service,but this is ridiculous .
At these prices it will be less expensive to burn oil .
Is this normal pricing in the market now ?
Maybe I should just find another distributor.
I know that trucking is expensive and a large contributor to what they charge, but diesel is down almost 2 gal over a year ago.
If they are looking for the max that a consumer is willing to spend per ton I think they found it.

 

[3650]

They passed my max a while back....lol.

 

[reallyte]

I don't understand these threads. It's still burning season thus prices will be inflated. Don't bother looking until memorial day...

 

[spaceace]

i'm not in the states, but for me, $275cdn a ton in 40lb bags will last me around a month. i'm getting bags due to not being able to get bulk or have a place for the large totes. same month for oil... $900+. i'm in an old farm house that is not very easy to heat

 

[Pete Zahria]

At these prices it will be less expensive to burn oil .

$350+ does seem high, you are right...
But... do you know what oil will be next season? Will it be $2.39 again, or back to $3.76?
I certainly don't know..

Is this normal pricing in the market now ?

It really depends on the brand, and your location...
Doug Firs can be over $400 in New England, but much cheaper out west..

I know that trucking is expensive and a large contributor to what they charge, but diesel is down almost 2 gal over a year ago.

It is.. now... But there were also times when the fuel went up, and the rates stayed the same..
Sure, fuel may have gone down, but the loan on the rig, the taxes, tolls, tires and repairs didn't.
Fuel is part of the cost, obviously, but not the big nut..

Dan

 

[hyfire]

Don't you worry the price of oil is scheduled to skyrocket... OPEC greed will come back soon...

 

[JRA]

Oil prices supposed to be staying low according to the so called "experts" calling the news. In fact they are projecting prices will be back down to 2 dollars a gallon in September. Either way you can't be sure. In mass the pellets I want for next season are 360 a ton, which is ridiculous and may not even go down in price for pre buy. Okanagan dfs. That is without delivery. I may just get three tons of la crete for 309 per 1.2 tons. Even with 79 dolars for delivery it comes out to about 5.60 a bag. I can live with that.

 

[IHATEPROPANE]

Oil prices supposed to be staying low according to the so called "experts" calling the news. In fact they are projecting prices will be back down to 2 dollars a gallon in September. Either way you can't be sure. In mass the pellets I want for next season are 360 a ton, which is ridiculous and may not even go down in price for pre buy. Okanagan dfs. That is without delivery. I may just get three tons of la crete for 309 per 1.2 tons. Even with 79 dolars for delivery it comes out to about 5.60 a bag. I can live with that.

Where are you getting the La Cretes? That price is most likely $309 per ton sold on 1.2 ton pallets. Which is $370/pallet. I doubt they are $257 per ton.

 

[Peterfield]

I don't understand these threads. It's still burning season thus prices will be inflated. Don't bother looking until memorial day...

But the sky is falling, don't you know.

 

[Peterfield]

Don't you worry the price of oil is scheduled to skyrocket... OPEC greed will come back soon...

Nope. If production is cut and the price starts to rise, fracking will pick up. New rules now. We have far more production than before. They've cut back some production in North Dakota due to low prices so when the price rises, so will U.S. production. I'd suggest giving the pellet boys the middle finger for now and wait for the summer prices.

 

[JRA]

Where are you getting the La Cretes? That price is most likely $309 per ton sold on 1.2 ton pallets. Which is $370/pallet. I doubt they are $257 per ton.

Didn't even think of that, probably the case. The vendor is pellets direct. They are doing a pre buy for dfs also at 309 per ton but they do not know which dfs they are yet? Not listed on the site. I called them and they don't know the brand all they could say is they are on the rail car and have to be drop shipped by end of April to get 309 deal

. They did say they are not purcell but couldn't tell me anything more. I burnt purcell fir mix and whatever they mix them with makes then burn like chit. If they are blazer or okanagan I would jump on them

 

[BrotherBart]

Nope. If production is cut and the price starts to rise, fracking will pick up. New rules now. We have far more production than before. They've cut back some production in North Dakota due to low prices so when the price rises, so will U.S. production. I'd suggest giving the pellet boys the middle finger for now and wait for the summer prices.

If the sanctions on Iran are lifted in the next few weeks you ain't seen nothing yet. OPEC is history already.

 

[Bioburner]

Didn't crude drop almost $3 today?

 

[BrotherBart]

Close to it. The countries in the Middle East have to feed their kids too. And they only have one crop to sell.

 

[chken]

Oil prices supposed to be staying low according to the so called "experts" calling the news. In fact they are projecting prices will be back down to 2 dollars a gallon in September. Either way you can't be sure. In mass the pellets I want for next season are 360 a ton, which is ridiculous and may not even go down in price for pre buy. Okanagan dfs. That is without delivery. I may just get three tons of la crete for 309 per 1.2 tons. Even with 79 dolars for delivery it comes out to about 5.60 a bag. I can live with that.

September? I paid $2.06 a gallon just last Tuesday, and I didn't have any special pricing plan. That was the current market price and my oil dealer is not the cheapest guy around, they're typically the most expensive.

 

[SidecarFlip]

The vendor is pellets direct.

Sounds to me like 'Pellets Direct' will be Bankrupt Direct shortly if they continue on their current business model....

 

[SidecarFlip]

Close to it. The countries in the Middle East have to feed their kids too. And they only have one crop to sell.

Thought they sold Pershian rugs too. I have quite a few myself. Kerman pattern is my favorite.

 

[jdogg]

If oil is cheaper burn oil it way less work anyways.

 

[zig]

Pellet manufacturers know you can't just go to the woods and cut another bag of pellets.

 

[Bioburner]

I could go and shuck some corn from the wild life plot.

 

[SidecarFlip]

I could go and shuck some corn from the wild life plot.

Right on..... Need a fanning mill with a hand crank.

 

[Stretch]

"It's cheaper to b urn oil....."

Which is exactly how the oil barons want it.

I believe that there are forces at work playing games with the
pellet industry. When I first started burning pellets, they were
around $100 a ton. It doesn't now cost 3 times as much to
produce a ton of pellets. Somebody's making a lot of money,
and the oil barons are realizing that they're losing market share -
hence the manipulation of that commodity.

That's the reason they have some of these crazy laws against
solar panels in Arizona and other places - to keep the oil flowing.

I've read that a barrel of Iraqi crude costs somewhere between
$9 and $11 to get out of the ground and into a tanker. Even at $49
a barrel, that's 600% PROFIT. 600% pure PROFIT. For that kind
of money, the oil barons will have us invade a country or two, let
alone make other forms of energy usage difficult.

That's why pellets are sometimes hard to get and expensive.

I had a 2nd garage to store pellets in, so I managed to get a year
ahead, and always had 4 or 5 tons on hand. Then it's just "burn a ton,
buy a ton." Not everyone has the luxury of that sort of storage space,
though.

-Tom

 

[woodmakesheat]

September? I paid $2.06 a gallon just last Tuesday, and I didn't have any special pricing plan. That was the current market price and my oil dealer is not the cheapest guy around, they're typically the most expensive.

Wow, I just checked and y'all do indeed have prices $.35 less on average than here in NH - I wonder why that is?

 

[JRA]

September? I paid $2.06 a gallon just last Tuesday, and I didn't have any special pricing plan. That was the current market price and my oil dealer is not the cheapest guy around, they're typically the most expensive.

Unfortunately 2.06 is not my reality yet. I live in a state nicknamed Taxachusetts. Everything is more expensive and right now we are at 2.39 for oil, expected to go down to 2 dollars by Sept "supposedly". First year with a pellet stove and oil will be at its lowest in back to back years. I like burning though so I will continue to buy pellets and burn oil intermittently.

 

[woodmakesheat]

Unfortunately 2.06 is not my reality yet. I live in a state nicknamed Taxachusetts. Everything is more expensive and right now we are at 2.39 for oil, expected to go down to 2 dollars by Sept "supposedly". First year with a pellet stove and oil will be at its lowest in back to back years. I like burning though so I will continue to buy pellets and burn oil intermittently.

I wonder why oil is less expensive in Taxachusetts than it is in "Live Free or Die" New Hampshire?