Consumers can expect to see further price reductions at the pump for heating oil, diesel, and gasoline as the decline in international oil prices continues.
It should be noted that Brent crude oil prices fell below $80 per barrel yesterday for the first time since January, with the losses coming on the heels of the U.S. downgrading its oil price forecasts for the remainder of 2022 and 2023, and against the backdrop of the price cap on Russian oil, which took effect on Tuesday.
The U.S. government agency, the Energy Information Administration (EIA), estimates that oil production will increase this year and next year, while the increase in demand will be smaller.
«As long as international prices continue to fall, this will be reflected in the price at the pump in the Greek market,» Michalis Kiouzis, president of the Hellenic Federation of Gas Station Owners, told CNN Greece.
Mr. Kiouzis explains that fuel prices have already been declining recently. For example, the price of heating oil—from October 15, when it first became available, through the day before yesterday—was recorded at 260 euros per 1,000 liters.
This decline is also affecting consumption, as, according to Mr. Kiouzis, there has been consumer demand for heating oil throughout this period as long as prices are not «prohibitive.» As forAs for diesel fuel, the price reduction is considered significant, as it is used extensively by professionals, and any increase has consequences throughout the supply chain and on raw material prices. There, however, as with gasoline, fuel consumption continues to decline, with drivers putting less fuel in their vehicles.
According to the Ministry of Development’s Liquid Fuel Price Observatory, the average price for regular gasoline currently stands at 1.953 euros per liter, for automotive diesel at 1.886 euros per liter, and for heating diesel at 1.179 euros per liter.
It should be noted that yesterday, the price of Brent fell nearly 4% below $80 per barrel for the first time since January 3.
At the same time, U.S. crude oil futures for January delivery fell below $74.50 per barrel, marking a new low for the year and the lowest closing price since December 23, 2021.
Today, December 7, oil prices remain low, despite some minor attempts at a rebound; however, according to analysts, investors are hesitant to stay in the market, as Russia threatens to take countermeasures. Specifically, on Wednesday morning, WTI fell below the $74 mark, and Brent continued its decline to $79.
Natural Gas: The December 13 Meeting Is Crucial
At the same time, ING’s forecast puts the TTF natural gas price at 150 euros/megawatt-hour in the first quarter of 2023 and anticipates a drop to 140 euros in the second quarter. It then estimates that the price will rise significantly to 190 euros in the July–September quarter ahead of the coming winter and to 220 euros toward the end of 2023.
Meanwhile, the issue of the natural gas price cap will be decided at the Energy Ministers' Council meeting on December 13.
Nine months after Russia’s invasion of Ukraine, which sent natural gas prices soaring, the European Union has not yet decided on a price cap that would prevent extreme prices, such as those seen last August, from occurring in the future.
Romina Nikiforou
