Oil Tank Prices 2021: How COVID-19 Affected Oil Tank Prices

Since early 2020, we have had many of our valued customers ask us “How has Coronavirus affected heating oil tanks prices?”. There is no doubt that the Coronavirus pandemic has changed almost every facet of life as we know it. This also meant serious repercussions for the global economy, as companies now had to consider what was and what was not fiscally profitable in a restricted COVID world. The value of certain trades and stocks has been fluctuating in the eyes of many investors for enterprising sectors, making it more important than ever to keep an ear to the ground concerning the value and pricing of certain commodities. Amidst the miasma of insecurity about what the future may hold for a lot of industries, an unforeseen golden boy has emerged in the form of the oil industry.  Let’s take a deep dive into the backstory of how the pandemic has affected oil tank prices in 2020, and what that means for heating oil tanks prices today.

What Happened to Oil Prices in 2020? 

With the need for self-isolation, the COVID pandemic drastically decreased transportation which has led to the demand for petroleum both leaded and unleaded taking a nosedive. With their product not being as in demand as it once was in a pre-COVID landscape, many big oil suppliers were finding that the pre-Coronavirus price for petroleum was a thing of the past as we made our way from lockdown to lockdown throughout 2020.

Once 2020 became the year of COVID, many self-starting entrepreneurs with dollars in their eyes stumbled across a new prospect in the oil industry, purchasing vast quantities of oil at cheap prices in bulk with the ingenious idea to flip the profit by hoarding and waiting for the value of its stock to rise back up, then sell. This was on the advice of many industry experts, citing that the 54p per litre price drop in January 2020 to 20p per litre was too good of a deal not to take advantage of, and even consumers started to notice that oil was generally becoming cheaper, industry experts started to keep eyeballs on oil tank prices. 

The Oil Price Collapse

This was only the beginning for what we now know as the oil price collapse of 2020, whereupon OPEC (Organization of the Petroleum Exporting Countries) underestimated the economic slowdown of COVID-19, causing them to overproduce and oversupply a product that a fresh COVID-19 globe would not need as much as was predicted. This led to U.S. oil prices going to negative figures for the first time on record. General price indexes for petroleum became a reflection of the dramatic economic downturn caused by the COVID-19 pandemic, while oil suppliers were scrambling for space to store their oversupply.

The supply and demand imbalance pushed forward by the mob has in turn pushed the cost of petroleum products downward. 2020 saw an oil price war resulting in oil giant Saudi Arabia seeking to gain market share by offering discounts to western countries. This began a chain reaction of reduced earnings forecasts, cut capital budgets and ultimately the “April Lows” which led to an unprecedented collapse in oil prices, causing oil industry players to sell off their oil at low prices due to an inability to store excess oil. From then until the end of 2020, the oil market has been on a slow turnover and experts are eagerly anticipating what effect the COVID-19 vaccinations will have on the buoyed market. Even with the possibility of a “small rebound”, which some industry experts such as Malcolm Farrow of the industry body, the Oil Firing Technical Association, forecast, most agree that those who have the means and the aptitude for profit should take the plunge and get into the oil business whilst they can and keep track of the steady oil tank prices.

The Winners and the Losers of the Oil Price Collapse

The first 8 months of oil tank prices in 2020 were highly volatile, from the importers and refiners barrel all the way to the pump. With the CPI for gasoline declining, a lot of would-be oil startups were worrying about home heating oil tank prices and domestic oil tank prices whilst they were left in limbo, waiting on a potential mountain of gold but couldn’t see a significant short term profit because of taxation levels and the stress of wondering where to buy home heating oil tanks in bulk. Many had become hoarders left to tend to their goose that had yet to lay a golden egg and had to contend to the mercy of a new beast entirely – the oil tank business. Many remained sceptical over what the future of oil tank prices held.

Just like the rest of the world, many businesses have studied the trends, and have found that many owners are in need of the right equipment for storing all this oil. Because no one was driving or hauling due to the pandemic, oil producers had excess oil that they needed gone, and as a result, these assets were valued much lower. Market analysts were taking note that because many entrepreneurs were purchasing cheap oil, big oil producers were eager to dump, meaning those new buyers would also have to additionally purchase extra oil tanks in order to safely and securely store the now cheaper fuel. Accordingly, as a complementary product would, the price of oil and fuel tanks started to correlate with the current massive public demand for oil storage solutions. 

An Inevitable Consequence: Oil Tank Prices Rise as the Demand for Oil Tanks Increases

Oil industry experts such as Carol Bell have stated that storage has been the principal immediate issue facing all potential oil businesses: from local startups to bigger conglomerate refineries who need tankers holding crude oil. The oil price collapse of 2020 saw many micro dilemmas in oil tank related incidents across various industries.

Firstly, many hospitality sectors suffered greatly and had to worry about oil tank prices. The worst blow they suffered was that, because they were forced into a mandatory shutdown, many of them couldn’t benefit from the oil price drop. Outgunned and outmatched, these hospitality businesses could only sit back and buy bunded oil tanks at the new oil tank prices to keep in storage for a later date and had to watch from the sidelines as businesses who didn’t heavily rely on face-to-face profits reaped the benefits of the oil price collapse.

Some sectors fared far better and considered the rewards that came with a lower oil cost to be a fair trade-off for the new oil tank prices. One of these was the agricultural industry, which saw a great benefit as their production continued throughout lockdown. With the cost of oil lowered, the price of fueling their equipment and vehicles became cheaper. Resultantly, they saw great economic gains.

With fears of another economic recession, the macroeconomics of the oil price collapse was felt around the globe, with each particular field and their idiosyncratic issues, wondering how they would combat the new oil tank prices.

As the oil price goes down the fuel tank price jumps up as is the logical economic progression, so who can you trust in such a climate? Who can the public rely on for fair bunded oil tank prices? How much do oil tanks cost in this climate?

Where can I Buy Oil Tanks?

RPM Fuels & Tanks has been paramount in providing our customers with a wide range of water storage tanks, domestic oil tanks, construction fuel tanks, civil engineering fuel tanks, and tanks for agricultural and farm use. 

RPM’s fuel tanks are proven to be a highly practical and versatile storage solution, allowing for the bulk storage of many liquids including diesel, kerosene, oil, waste oil, biodiesel, and water depending on the fuel tank type. 

The RPM oil tank range is perfect for customers in industrial and domestic markets. We make sure our extensive range allows you to find the best type of oil tank your business requires. An agricultural business could easily capitalise off something like a 500 Litre Bunded Skid Bowser or similar tank profiles with specific requirements that could greatly benefit your business. Whilst the pandemic slowly eases off, hospitality sectors could make use of one of the super slim and horizontal tanks in bunded formats like the 2525 Litre Bunded Oil Tank – Harlequin 2525 ITE to suit a variety of usage and space requirements. Knowing your oil tank was handcrafted by trusted major manufacturers such as Harlequin, you could reap the long-term rewards at an economically viable price tag.

RPM Fuels’ extended offerings include towable bowsers for fuel transport, bunded plastic tanks for domestic oil storage, and steel tanks for construction purposes. Our team has over 24 years of experience in the fuel industry and are ready to help at any notice. 

How Much Does an Oil Tank Cost?

You may find that the actual oil tank price for the type of tankard you need can vary according to several factors such as oil tank capacity, what sector of business you’re coming from, supplier, and manufacturer. RPM Fuels and Tanks hosts many different brands such as Atlantis, Carbery, Fill-Rate, FMT, Harlequin, Piusi, and Titan. You might find, for instance, that a domestic bunded oil tank might start at £1,050 and go up to £1,499 depending on its capacity (lower end 1000 litres would be cheaper) and brand (Titan and Harlequin tend to be better regarded and thus more costly). 

You’ll find that UN-approved agricultural diesel or skid bowsers and construction fuel tanks tend to average out at a higher asking price at a median of £2,195 with the most expensive reaching £5,150. This is because the best agricultural oil tanks require more craftsmanship, but if you’re looking for a bargain you may find something as cheap as £595. Civil engineering tanks for commercial and industrial fuel storage for flammable fuel storage also fall under the same price range.

What Does the Future Hold?

As the pandemic seems to be gearing up for the final act, industries with businesses both large and small have been on the edge of their seat in anticipation of what the future holds. The global conversation surrounding the future of oil is running parallel to the climate change debate and, with the advent of lockdown, virtual workplaces and the rise of renewable energy installers, people are now wondering what the future holds. With RPM Fuels and Tanks’ streamlined and intuitive online shopping experience, our wide variety of quality manufacturers, and our goal to source their customers the best deal possible, the future looks bright.