Project: JV LPFO Bulk Fuel as feedstock, storages and trades

Fuel oil (Low Pour Fuel Oil) is a lighter type of oil, or a liquid byproduct of crude oil, which is used for energy, especially for heating. When petroleum is refined, there are two main categories under which it is classified: distillate oils, including diesel, and residual oils, which include things like kerosene. There are different types of fuel oils in each category. The distillate type is generally used for home heating. 

While gasoline is also a byproduct of the petroleum refining process, it is far less stable than the fuel oil used to heat homes and commercial properties. Even so, the rise and fall of gas prices is generally a good indicator of the stability, or lack thereof, of other oil prices. Since the price of crude oil directly affects the price of oil used for fuel, consumers should be prepared to pay more to heat their homes as the worldwide demand for oil and gas continues to increase. 

The costs of refining must also be figured in to the price, as must the costs of transporting and distributing it. When the price of crude oil rises, gas prices go up, so the price of transporting fuel oil does as well. This may be felt even more by families that live in rural locations, requiring longer trips to transport and distribute the oil. 

Seasonal issues tend to play a role in the price of fuel oil as well. During periods when the demand for gasoline is high, refining companies process less oil for heating. This means that, when the demand for home heating oil increases, so will the price because the supply is limited. This fact often causes the price to rise quickly and sharply. 

In the U.S., much of the oil that is consumed, including heating oil, comes from foreign sources. Some of the refining is done in the domestically, but the rest is refined in other countries such as Canada or Venezuela, which may also affect the price. 

Heating oil (Low Pour Fuel Oil) is a refined oil made from petroleum, used in furnaces to heat buildings. It is the main source of heat in about 8.1 million American homes. People living in the northeast US are more likely to heat their homes with oil than other parts of the country, consuming more than 80% of the total used every winter. Diesel oil and heating oil are quite similar, and they are refined in a very similar way. 

People whose homes rely on oil for heat in the winter are justifiably concerned about its cost. As with every petroleum product, the price goes up and down, depending on the cost of the crude oil from which it is made and other variables such as refinery capacity. 

Heating oil is trucked to individual homes and pumped into underground storage tanks. Since it is more expensive in the winter, when demand is high, most people will have their tanks filled in the summer or early fall, when prices are lower. Unfortunately, home tanks are rarely large enough to store enough fuel to last through the winter, so homeowners often must purchase more oil at winter prices. 

Weatherproofing a home can help keep heating costs down in the winter. Homeowners can make sure that their windows and doors are close-fitting and install weather stripping around them to keep out drafts. Passive solar systems can also be useful. Homes with north-facing windows can allow the sun in to heat that part of the house during the day, and windows should be covered with insulated curtains as the sun goes down to prevent heat loss. 

Some heating oil suppliers will allow their customers to spread the cost of the oil out over the entire year. This lessens the shock of having huge utility bills in the winter months, at the cost of paying a little more during the warmer months. Of course, homeowners can turn down the thermostat when they are out of the house and wear more layers of clothing when they are at home to lower their heating costs more simply.