Energy costs have been one of the main drivers of what’s become the highest inflation rate in a generation. In recent days, the price of a barrel of U.S. benchmark crude oil hit a seven-year high - $87 a barrel, a dizzying jump of about 36% since Dec. 1.
What’s going on? For one thing, the ever-evolving state of the viral pandemic has played havoc with both supply and demand. As a consequence, energy has been gripped by violent price swings. Most analysts say that prospects are dim for any relief soon. Other factors have kept energy prices high. Most urgently, Russia’s buildup of a military presence along the Ukraine border has raised fears of an imminent invasion and a consequential impact on global energy supplies.
There is good news for Co-op members who locked in or capped the price of their heating oil this past summer. They have protected their budgets from this spike in pricing. Many of our members were able to lock in a price of $2.74 per gallon. This has resulted in significant savings as the average price for fuel oil has been $3.08 since September 1st and reached a high of $3.52 per gallon in January.
Where oil prices go from here is not known but members who utilized the
Energy Co-op's Price Protection programs this year made a good hedge against rising prices.
Sign up for next year's Price Protection Programs begins again in late spring.
