Hey Genie, who is OPEC and WHAT is with these oil prices?

Thank you for asking. OPEC and oil prices are two very important questions!

The Organization of the Petroleum Exporting Countries, also known as OPEC, is an intragovernmental organization from countries all over the world whose objective is to secure fair trading prices for their product and maintain a fair return on capital to their investors. Additionally, the OPEC alliance is to keep product supply in line with demand of consumers.

Last year, oil prices declined. The drop in price was caused by a world-wide surplus with extra oil in reserves. Despite the surplus, countries continued to produce crude oil, even though the value was going down. We Genies loved this because our customers benefited!

However, because of the over production, economically, oil producing countries were losing market value on the cost per barrel.

In December, 2016, OPEC was to have a scheduled meeting, and on the agenda was a vote about production. Even before the OPEC vote, the market began anticipating a drop in supply. This speculation caused oil prices to begin and upward trend. At that meeting OPEC voted to slow down production. The speculation was supply would decrease, which caused prices to continue an increase per barrel.

What will happen at the January 20th OPEC meeting? Well, even my magic ball doesn’t have the answer! Just remember – no matter what – the Aladdin team of Genies are committed to providing FAST, AFFORDABLE, ONLINE heating oil service at the lowest prices possible!

-Genie

Aladdin Heating Oil cares about its customers. We deliver safe, clean burning heating oil to your home when you need it, serving communities in: Baltimore County, Carroll County and Howard County in Maryland and Littlestown, Pennsylvania

Additional resources:
Check Today’s Heat Oil Price
OPEC Website
Energy Information Administration Drilling Report

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