Hope for an end to the war with Iran has lowered oil prices. Fuel is getting cheaper at petrol stations
Hopes for a diplomatic end to the conflict between the US and Iran have pushed oil prices down. In Germany, E10 petrol now costs less than two euros per litre.
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In brief
- Brent and WTI crude oil prices fell on Monday on hopes that the US war with Iran would end.
- In Germany, E10 petrol cost on average 1.996 euros per litre on Sunday, and diesel 2.241 euros.
- Analysts warn that geopolitical risk remains high and that no agreement has been signed yet.
Oil cheaper on hopes for peace
Oil prices fell on Monday morning as investors began to count on a swift end to the US war with Iran (Hoffen auf Ende des Iran-Krieges: Ölpreise deutlich gesunken – tagesschau.de). A barrel of Brent cost about 96.76 dollars, and US WTI about 89.77 dollars. Both grades got more than one percent cheaper. These expectations were based on a statement by US President Donald Trump, who considered new attacks on Iran very unlikely as long as talks on ending the conflict continue.
Last week the price of Brent had already fallen by 16 percent. Analysts, however, warn against too much optimism. Sugandha Sachdeva of SS WealthStreet pointed out that despite progress in the talks, geopolitical risk remains high, and a renewed escalation of fighting cannot be ruled out.
Fuel prices falling at stations
In Germany, E10 petrol cost on average 1.996 euros per litre on Sunday, which is 7.6 cents less than a week earlier (Tanken: Benzinpreis sinkt im Tagesschnitt wieder unter zwei Euro – ZEIT ONLINE) (E 10, Benzin, Diesel: Sinkender Ölpreis sorgt für Erholung an der Zapfsäule – DER SPIEGEL). The data was provided by the German automobile club ADAC. Diesel became 4.1 cents cheaper and cost 2.241 euros per litre. Petrol had already been below the two-euro threshold on Friday and Saturday, and on Sunday both fuels rose slightly.
A lasting trend is not yet visible. Preliminary data from Monday morning from the portal Tankerkönig indicate a slight decline. The further direction of prices depends on whether the peace talks produce a concrete agreement. For now, no agreement has been signed.
Key figures
- Brent: about 96.76 dollars per barrel
- WTI: about 89.77 dollars per barrel
- E10 petrol (German average, Sunday): 1.996 euros per litre
- Diesel (German average, Sunday): 2.241 euros per litre
Sources
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