Marketing Update: 2015-16 Newsletter and PreBuy Program

What a winter! Coldest in years! Record winter weather!

This is how we all remember the winter of 2014-15. Well the degree-day measurement tells a different story. From October through January we were warmer than last year, actually it was 5% warmer than 2013-14, then came February. This month alone was 25% colder than last year which brought us up to about 2% colder than last year. When the winter ended late March, we were only 2% colder than last year. We think what made this winter seem “colder” than last year was the amount of snow that we received and the wind chill.

How did the weather affect pricing last winter? If you use propane, there was very little movement on propane prices. The inventory and distribution systems were both above normal going into the winter so prices were stable. Fuel oil was a different story. During the extreme cold snap in February the rivers and ports that feed the refineries in the northeast froze and crude oil deliveries were stopped. This disrupted supplies and forced prices up.

As explained and demonstrated in past newsletters, there always seems to be something that happens during the winter that causes the price to spike, sometimes for a brief period but other times it can last for months. The pre-buy program is your best “hedge” to ensure and guarantee that you can avoid any unplanned price spikes.

Please find enclosed the 2015-16 Pre-buy contract and pricing information. Hometowne will again allow you to spread the payment over 3 months to help you take advantage of the pre-buy program to protect and ensure you 2015-16 fuel.

2015 HOMETOWNE ENERGY NEWSLETTER

« Go Back