Oil prices can fluctuate daily for a variety of reasons. Some of these reasons include: Commodities Trading - Heating oil is traded on the commodities market just like other home heating fuels. This means heating oil cost is subject to fluctuations, just like the stock market. Heating oil like any energy product responds to supply and demand fundamentals, such as cold or warm weather or supply issues in foreign countries. Changes in the cost of crude oil - Crude oil is a major price component of heating oil, and changes in the price of crude oil affect the price of heating oil. Regional operating costs - Prices also are impacted by costs of transporting the product to various locations. In addition, the cost of doing business by dealers can vary substantially depending on the area of the country in which the dealer is located.