Energy prices: Heating oil prices collapse – expert makes recommendation

The year 2022 was for many consumer marked by ups and downs in energy prices. At the peak of the energy and price crisis, you had to pay more than 40 cents for a kilowatt hour (kWh) of gas. Heating oil prices also repeatedly broke records. In March 2022, a liter of heating oil cost more than two euros – those times are over, at least as of today. The gas price has been leveling off at the pre-war level since December and heating oil prices have also been flying low since the beginning of the year.

Heating oil prices fall below the 1 euro mark and reach pre-war levels: that’s what an expert says

As of February 8, 2023, a liter of heating oil costs a little more than one euro on average. At the beginning of February, heating oil prices at the state level had even slipped below the 1 mark. In North Rhine-Westphalia (NRW) and Saarland, heating oil customers had to pay about 98 cents per liter. Such prices for fuel oil there hadn’t been one in Germany since the beginning of the war in the Ukraine. The current development of heating oil prices comes in handy for many customers. In many households the heating oil tank is empty and the opportunity is right now.

According to information from “esyoil” the number of orders on February 7th increased “by leaps and bounds” – at least that’s how it puts it expert Claudia Lohse in her contribution to the comparison portal. The willingness of consumers to buy is high and the readers see a good time to buy. But why have heating oil prices in Germany suddenly fallen so drastically to the pre-war level for consumers? The online portal specializing in advice topics is currently reporting on the possible reasons “agricultural today” in an assessment. The following reasons are given:

Heating oil prices plummeted in February – five possible reasons for this development

Heating oil prices closely linked to crude oil prices: A look at international stock exchange prices is surprising

“agrarheute” cites the crash in crude oil prices and gas oil prices on the international markets as an important factor in the current development of heating oil prices in Germany. Gas oil is an important preliminary product for heating oil or diesel and therefore determines the price formation. A barrel currently costs US Crude Oil on the exchange $77.91. North Sea oil is according to information from “HeizOel24” at 84.33 dollars per barrel, it is currently somewhat more expensive. A ton of gas oil is currently traded at $860 per ton on the stock exchange.

“agrarheute” names the increasing crude oil reserves in the United States as another factor USA – these would have reached their highest level since mid-2021 in the first week of February. The generally low gas prices on the European energy market are having an additional positive effect on the development of all market prices in the energy sector. As of February 8, one kWh of gas for new customers costs 12.1 cents – for comparison: On September 1, 2022, the price had increased according to information from “Verivox” still at 40.1 cents.

Heating oil prices are flying low – despite the oil embargo against Russia: How consumers are reacting

The international development is just as pleasing natural gas price. At the trading place “Title Transfer Facility” (TTF) natural gas was last traded below 60 euros per megawatt hour (MWh). That corresponds to a price of less than six cents per kWh. The downward trend in prices in other energy sectors could therefore be a reason for the downward trend in heating oil prices in Germany. Most recently, the EU’s oil embargo against Russia, which came into force on February 5, 2023, fueled concerns about rising oil prices.

But the fears of many market analysts have not come true. On the contrary: heating oil prices have fallen sharply. However, the further development of energy prices is unclear. This is one of the reasons why the willingness to buy is presumably so great at the moment. But should consumers now quickly order their heating oil or wait and hope for even lower prices? Even market analysts like Lohse find it difficult to answer this question – but she has a tip ready for anyone who is still undecided.

Buy heating oil now or wait for cheaper prices? Experts with tips for the undecided

Lohse in her contribution for “esyoil”: “Anyone who looks at the 1-year view of the price curve sees a comparatively good price moment – even if things are going up again.” The expert is talking about the current development of the heating oil prices on February 8th. Because from Tuesday to Wednesday, the price of heating oil per liter rose again slightly. According to information from “Tecson” and “esyoil” by one cent each. The comparison portal “TotalEnergies” gives the price per liter of heating oil as on February 7 at 1.04 euros.

Gloomy news regarding heating oil prices comes from Norway and Turkey. According to information from “HeizOel24”, the problems at the newest and largest oil field in Norway do not rest. Due to technical problems, production capacities of 535,000 barrels per day are expected to be available for two to three days crude oil out, according to a post by “HeizOel24”-Author Fabian Radant from February 7th. The earthquake disaster in Turkey in turn led to the closure of the export port of Ceyhan – crude oil is also exported from here.

Heating oil prices could rise again soon: Gloomy prognosis – these are the causes

In addition, the operation of Turkey’s Kirku-Ceyhan pipeline has been suspended until further notice. Before the earthquake catastrophe, this had transported 475,000 barrels of oil per day from Iraq to the Mediterranean. The failure of the pipeline and the sea route bottleneck could make itself felt in the development of international energy prices in the coming days and weeks. Further developments in Turkey and Syria are completely unpredictable. One thing is certain: the longer the problems last, the greater the risk of heating oil prices rising again.

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