Drivers are also feeling the consequences of global trouble spots at the pump: wars in the Middle East and Ukraine are affecting fuel prices.
Berlin/Munich - Anyone driving their car to a gas station in mid-April 2024 has reason to be concerned: Due to several international trouble spots, fuel prices have currently risen sharply again in some cases.
As the ADAC describes, the price of gasoline in Germany has reached a new high this year. The national average for a liter of E10 recently cost around 1.87 euros, which corresponds to an increase of 1.6 cents compared to the previous week.
Fuel prices: Conflict in the Middle East is making crude oil more and more expensive
The main reason for the increase in gasoline is the increased price of Brent crude oil, which is close to $90 per barrel. This is currently being severely impacted by several global conflicts that are having a financial impact on consumers' wallets:
In particular, the uncertainties in the Middle East due to the geopolitical tensions between Israel and Palestine and Iran are causing fuel prices to skyrocket. In the past two months alone, the price of crude oil has risen by around $12.
Diesel has also been on the rise in recent weeks, although fortunately this development is currently stagnating: a liter of diesel costs just under 1.75 euros, which corresponds to a decrease of 1.2 cents compared to the previous week.
Israel and Iran: Threatening escalation affects fuel prices
The costs for the “black gold” were fueled by reports of explosions in Iran and a possible Israeli attack, according to
Handelsblatt
. Investors on the stock exchanges are then reacting with concern in view of the scenario of a renewed escalation in the Middle East.
Senior Israeli military officials said they had no choice but to respond to Tehran's attack. This is despite Western and Arab nations attempting to discourage Prime Minister Benjamin Netanyahu from such attacks. About a third of the crude oil destined for global markets comes from the region, explains the
Bloomberg
news agency - highlighting the potential impact.
This set in motion a change of course, as the oil price had relaxed - albeit slightly - in the previous days in view of the geopolitical situation.
Fragile crude oil market: expert sees “supply risks becoming reality”
In view of the developments, the head of the raw materials strategy of the ING Group in Singapore paints a dramatic picture: Warren Patterson tells
Bloomberg
that the events “could indicate that the worst fears have come true.” What the manager means specifically: People are getting closer Scenario “in which supply risks could become a reality”.
Why the dispute between Israel and Iran affects energy and fuel prices: According to the report, a geopolitical risk premium is added to crude oil due to the conflict; we are talking about 7 to 10 US dollars (per barrel).
Other causes for rising fuel prices: Ukraine conflict and the situation in the Red Sea
In addition, the Ukraine war has an impact on the costs of the “black gold”: Russia is one of the largest exporters and produces around two million barrels of diesel per day, half of which, according to the
NZZ,
is exported. Due to the oil embargo, however, only into the EU via third countries. So if Ukraine attacks Russian oil refineries, this will most likely have an impact on oil prices.
The third influencing factor: the attacks by the Houthi militias in the Red Sea. Oil tankers have to take longer detours, which leads to delays and thus availability becomes more limited. However, the OPEC organization (headquarters: Vienna) has not yet intervened to compensate for this shortage, reports Spiegel.
In addition, according to the ADAC, experts expect that as the global economy continues to grow, demand for oil will increase, which could further drive up the price of fuel.
(PF)