The suggested retail price for this Tuesday of 2.40 euros per Euro 95 liter, which consumer collective United Consumers collects from five major oil companies, is a target price and partly symbolic. She comes on the fuel receipt along the major autoroutes, just beyond that the price is sometimes tens of cents lower. However, refueling under two euros per liter is virtually impossible.
“The price of crude oil is now rising so fast that it is almost inevitable that gasoline prices will rise even further to 2.50 euros,” says Van der Straaten.
The basis of all refined gasolines and diesel is the pumped-up Brent oil, which rose 10 percent in tariff on Monday and passed the $135 limit per barrel (159 liters). Oil has never been so expensive in euros, according to energy economist Hans van Cleef of ABN Amro.
Sanctions
“The great fear behind this price increase is that the European Union and the United States will increase their sanctions against President Putin now that he indicates that he wants to continue the war in Ukraine,” says Van Straaten.
Another sanction against Putin could be a blockade of all oil and gas from Russia. Although Prime Minister Rutte indicated on Monday that he did not feel that way. US Secretary of State Blinken says he is in favor of the blockade and does not want to miss any sanctions against Russia. He would prefer, but not necessarily, to join forces with Europe in this sanction. Japan is also participating. Russia supplies about 15 percent of all oil.
“Buyers are becoming increasingly reluctant to buy Russian oil because of the risk of sanctions,” said ING market analyst Warren Patterson. With a blockade on all Russian oil and gas, less fuel will immediately reach the already tight market, causing prices to rise.
Another important reason for the price increase is that oil is settled in US dollars. That currency is traditionally a refuge for equity investors and is rising enormously. This also makes the price of crude oil and ultimately refueling at the pump more expensive.
Large investment funds have been counting on these extreme price increases for some time. They put capital in investments and purchases of oil and also push the price up. Since the end of last year, some are already betting on USD 175 per barrel for this year. Many hedge funds speculated on Monday on an even further rise in prices: they are now counting on an average price of $200 a barrel, pushing prices higher.
Those prices are just offshoots of a whole market of commodities that have risen in price. On Monday, the European gas price rose 70% to a record 335 euros per megawatt hour. Consumers see this price increase reflected in their energy bills.