The Big Drop
Who ever thought that oil would ever drop back below $50 a barrel again? Right now it is trading at $48 a barrel. Heating oil, Kerosene, which takes its lead price from Rotterdam Kero, is lagging a long way back but is now selling at a slightly more reasonable €580 per 1000 litre fill. With all this major price dropping, I am wondering what will happen to the price of wood pellets?
Solid fuel prices rose sharply piggy-backing on the price of oil. Will these now follow oil downward again?
Right now it makes no economic sense to invest thousands of Euro in a wood pellet system and end up paying well above the odds for your fuel.