If any one thing is likely to affect heating oil prices in 2012, its an oil embargo on Iran.  The EU countries were planning to hold their meeting of foreign ministers, to discuss the embargo on the 30th January, but have just announced that it has been brought forward to 23rd Jan.

The proposed embargo is over western concerns that Iran is furthering its nuclear capabilities.  The west believes that Iran aim to build atomic weapons, although Iran deny it.

Iran threatens to block the Straits of Hormuz if the embargo goes ahead.  The Straits of Hormuz sees the passage of 40% of all shipped oil and that would certainly have a huge impact on domestic heating oil prices and road fuel prices.

Concern over Iranian action has already had an effect on the heating oil market, so 23rd January is a date for all heating oil users’ diaries.