Analysts Urge Fuel Purchases Amid Rising Heating Costs Due to Middle East Tensions

Following Israel's recent military actions against Iranian nuclear facilities, oil prices have seen a significant increase, prompting analysts to recommend that consumers consider refilling their fuel tanks. According to data from the comparison portal Verivox, the cost of heating oil in Germany has risen to approximately EUR93 for 100 liters, compared to an average of EUR87 in May--the lowest prices recorded in two years.

Despite the recent uptick in prices, experts suggest that now may still be a wise time to purchase heating oil. Long-term price evaluations indicate that current rates remain comparatively low. Additionally, analysts from Verivox warn that both geopolitical instability and rising carbon dioxide costs could further escalate prices in the coming year.

Israel initiated its military campaign against Iranian nuclear sites last Friday, resulting in heightened market volatility. Reports indicated that major oil and gas fields in Iran were also targeted during the attacks, leading to a sharp increase in oil prices and, consequently, heating oil costs.

For a typical household in Germany consuming around 2,000 liters of heating oil annually, the average price of EUR93 per 100 liters translates to heating costs of approximately EUR1,739. This is a notable decrease from the peak prices seen in September 2023, where 100 liters cost around EUR119.

In a broader context, the current price of EUR93 is still favorable when compared to historical averages: the average price in 2024 was EUR99, EUR104 in 2023, and a significant EUR131 in 2022 for the same quantity of heating oil.

The fluctuations in heating oil prices are largely attributed to developments in the global oil market. Earlier in May, oil-producing nations reached an agreement to increase production levels, which led to a decline in oil prices. Additionally, uncertainties surrounding trade policies in the United States and concerns about a potential global recession have also contributed to the recent price dynamics.