I'm thankful I didn't lock in my heating oil price
Buyer’s Remorse Chills New Englanders Who Locked in Oil Prices
Nov. 26 (Bloomberg) -- Max Hartshorne was thrilled to lock in a winter’s worth of heating oil at $4.09 a gallon.
That was in July. Now heating oil is $2.75 a gallon and Hartshorne can’t break his contract with the dealer.
“I was just so angry,” said Hartshorne, 50, who uses about 900 gallons of oil to warm his home in South Deerfield, Massachusetts, each winter. “I said, ‘You guys can’t be serious about $4.09 a gallon.’ And he said to me, ‘We’re deadly serious.’”
Buyer’s remorse is afflicting tens of thousands of customers in New England, where heating oil is used more than in any other U.S. region. Their eagerness to nail down a guaranteed rate backfired when oil prices fell.
“There was a belief [Oooh! A fine example of ducking the question of agency!] that heating oil could rise to $6 or $7 a gallon,” based partly on predictions by Goldman Sachs [my parasite!] Group Inc. and billionaire oilman T. Boone Pickens, said Matt Cota, executive director of the 120-member Vermont Fuel Dealers Association in Montpelier.
“Some dealers had lines out the door,” Cota said. “People were coming in with their checkbooks to sign contracts. There was a palpable panic in the cold-weather states.”
Why didn't I sign up?
Because they were pushing so hard for it I figured it couldn't be good for me; I imagine it was just like dealing with a real estate salesperson pushing a subprime mortgage.
Market manipulation, anyone? Nah. They would never do that.