Berlin.
Heating oil prices fell in January – should consumers act quickly? How experts assess the situation on the energy market.
The war in Ukraine and the associated energy crisis has massively increased the prices for classic fuels such as gas and heating oil. In 2022 could consumer buy heating oil for less than one euro per liter in January. For comparison: On January 17, 2023, heating oil prices settled at an average of 1.16 euros. At the peak of the energy and price crisis, prices per liter of almost two euros were on the agenda. In view of the current heating oil prices, these times are over, at least for the time being.
Heating oil prices flying low in January: how the willingness to buy has developed
However, energy prices could change unexpectedly overnight – the recent past has shown this all too clearly. This poses a major challenge for many consumers with an oil heating system in particular. Then fuel oil unlike gas, it is usually ordered in large quantities once a year. When ordering, the daily updated heating oil price applies – even if the prices rise or fall again before delivery. A cancellation of the heating oil order is not possible – consumers are bound by the contract.
The short-term ups and downs in heating oil prices are all the more annoying. the consumer have to order at the right time – especially in the energy and price crisis, a bit of luck is required here. Could now be the right time? After all, heating oil prices have been flying low since January and have currently leveled off below the €1.20 per liter mark. The comparison portal “esyoil” analyzes the development of heating oil prices in Germany on a daily basis. According to the market analysts, the willingness of heating oil customers to buy is currently “high”.
Downward trend in heating oil prices: buy now or wait? Expert gives recommendation
The “esyoil” buy recommendation is – as of January 17 – still “neutral”. Also Market Analyst In his comment for the comparison portal on the development of national heating oil prices, Klaus Bergmann is cautious. The long-term price development on the heating oil market is still completely open with regard to the 3-year view. Heating oil prices are currently quite stable. But Bergmann is certain: “Some event will one day provide clarity and demand a clear trend.”
Bergmann’s recommendation to those who are still undecided heating oil customers: “Follow the price development closely – and stock up if necessary at a favorable moment. The international market is also currently not showing any clear price trend. The focus here is primarily on China. Since the move away from the zero-Covid policy the demand for oil has increased.
Development of heating oil prices: Expert names specific price per liter as a guide
Around two billion people would travel for the New Year celebrations. This in turn leads to greater demand for fuel and thus oil. However, the international exchange prices for crude oil do not show any trend or external influence. They roughly correspond to the values from the previous day. Bergmann: “The worries about a recession are reduced – but by no means over.” Thus tending not with strongly declining exchange prices expected for crude oil.
| Oil grade per barrel | Price in dollars on January 17th |
|
WTI (West Texas Intermediate) |
79.08 |
|
Brent |
84.45 |
|
ton of gas oil |
934.75 |
Note: $1 equals €0.92 on January 17th
That in turn also leaves for the national heating oil prices expect a stable high price trend. But as always, it should be noted that this is all speculative. Unexpected events can affect demand and prices in a very short time. Nevertheless, Oliver Klapschus – Managing Director of the comparison portal “HeizOel24″ – in his daring forecast of heating oil prices in 2023 does not assume that prices will explode again.” In an interview with our editors, he named a liter price of 1.10 euros for 2023 as a rough guide.
Order heating oil now or wait? Market analyst gives outlook on prices 2023
Klapschus: “But that’s all speculation”. Factors such as the war in Ukraine or the weather could quickly change heating oil prices. He also recommends closely monitoring the development of heating oil prices in Germany. “The current price level is okay in view of the crises in 2022.” But those who still have inventories can benefit from observing the development of heating oil prices a little longer. A look at the previous years has shown that in the first half of the year at the fuel oil order often come across attractive offers.
The question – whether you should buy heating oil now or wait and see – cannot be answered across the board for everyone. Those who still have oil reserves can delay the decision a little longer and observe further price developments. Conversely, consumers with less heating oil in their tanks can currently benefit from significantly lower prices than in December. With currently an average of 1.16 euros per liter fuel oil significantly cheaper than in previous months. In the peak phase, the record was broken on March 9, 2022, according to information from “esyoil” with 2.09 euros per liter.
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