“Escalation level one”: The (future) effects of the Iran conflict on our gas stations

On Monday morning you could Gas stations Filling up is still relatively cheap. In Vienna St. Pölten or Eisenstadt you could find a liter of petrol for 1.45 euros and diesel for 1.50 euros. At lunchtime the situation looked different. Some gas stations had them Prices increased by 20 cents. This reflects the reaction of the energy markets to the current conflict in the Middle East.

Energy market expert: “We are at escalation level one”

The price of Brent crude oil, which is the predominant type in Europe, jumped by up to in early trading 13 percent laid down. Later the price leveled off again, but the uncertainty is noticeably large. “We are in escalation level one,” says energy market expert John the Benigni from JBC Vienna. The Strait of Hormuz, through which around a fifth of the world’s oil shipments pass by ship, is blocked.

There is hardly any other way than through the Strait of Hormuz

Unlike by sea, 15 million barrels of crude oil every day could hardly be transported out of the Persian Gulf. There is indeed two pipelineswhich could be used to bypass the strait – one across Saudi Arabia, one through the United Arab Emirates – but their capacity is already there pretty busy.

Destruction of infrastructure would be even worse

The next level of escalation would be if Israel and the USA and Iran began to destroy infrastructure on a large scale. “That would mean that the market long-term damage There was already a small foretaste of this. The Ras Tanura refinery in Saudi Arabia was attacked by Iranian drones. They were repelled, but falling parts still caused a fire.

Diesel prices could rise sharply

Europe is particularly vulnerable Dieselsays Benigni. Large quantities of the finished fuel are imported from the Middle East. Threatening delivery disruptions immediately caused diesel prices to rise sharply. “We are now back to the same level as they were Russia sanctions have been announced.”

Gas prices are rising particularly sharply

The price increases for natural gas are dramatic. While wholesale prices fluctuated between 32 and 35 euros per megawatt hour last week, they rose to over 40 euros at the weekend. On Monday, trading for the following day reached almost 50 euros – one increase one almost 50 percent within a week.

Alternatives to liquid gas from Qatar are available

Die Liquefied gas production in Train stands still after Iranian attacks. This is unpleasant for European gas supplies. However, the continent has a relatively wide range of natural gas import options, says Bernhard Painzboard member of Austrian Gas Grid Management (AGGM): “The liquid gas from Qatar can be compensated.” The fact that the outage is occurring at currently mild temperatures further eases the supply situation.

Price increases staggered – except for floater tariffs

OMV sees the supply of oil and gas as secure. However, alternative scenarios are being prepared in the event of a longer-term restriction on the shipping route. The increased ones Wholesale prices Natural gas will affect most customers have a strong time-delayed effect. Users of floater tariffs will immediately have to pay more for their consumption. If the price falls again, they will be the first to benefit. Painz: “It’s a risk assessment by the customer.”

By Editor

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