Re: lock in or not - Saab General Bulletin Board - Saabnet.com
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Re: lock in or not
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Posted by Noel (more from Noel) on Thu, 15 Sep 2005 05:53:03 Share Post by Email
In Reply to: home heating oil... in Connecticut.. lock in or not ?, mlc [Profile/Gallery] , Wed, 14 Sep 2005 12:38:38
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Not sure it matters whether it's CT or other colder state.
There were 2 articles yesterday about this in our local town paper here in NH. People who already locked are probably going to be OK. But prices may be volatile for a while until the supply chain sorts out. You should shop around if you are looking to lock.

Also see if the contracts have "downside protection." Up here some contracts give you this for a flat $50 fee that gives you oil at the lower price if prices go below your lock-in price. I've never seen it happen, but it could this year, once the volatility goes out of the market.

The owner of the company we locked it with (done last month) said he is hesitant to buy more oil than he already has reserved because he worries he can get nailed on the cost he pays if oil costs go down.

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