Both oil and gas prices recently reached a high. Both prices have since fallen again. Oil failed to maintain its high level of over $70. This is mainly due to the dollar's strengthening in recent days and the easing of geopolitical tensions in the Middle East.
Last Thursday (January 29th), oil reached $70,71 per barrel, its highest price in six months. Since then, the price has fallen. At the time of writing (Tuesday afternoon, February 3rd), the oil price stands at $66,76 per barrel, a 5,6% drop from its recent peak. However, compared to December 16th, when oil closed at $58,92 per barrel (its five-year low), the price has still risen by 13,3%.
Trump threatened to strike Iran militarily after the brutal suppression of protests. Ten warships are currently docked off the Iranian coast. The US and Iran will now negotiate, likely in Turkey later this week. Washington demands that Iran halt nuclear weapons development, limit its ballistic missile program, and stop supporting militant groups in the region. The former is said to be of particular importance to the US.
The US trade deal with India also affects oil prices. The US is lowering its tariffs on India to 18%. India is also reportedly buying more American goods, including agricultural products.
According to Trump, Indian Prime Minister Modi has also agreed "to stop buying Russian oil and instead buy much more from the United States and potentially Venezuela," he wrote on his own social media channel, Truth Social. However, Reuters reports that Russian contracts are still running and require a wind-down period, and that the Indian government has not yet ordered a complete shutdown.
The OPEC+ countries of Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman met on Sunday. The eight countries reaffirmed their decision not to increase oil production through March, thus preventing further pressure on oil prices.
Diesel price slightly down
Diesel is slightly cheaper than a week ago. On January 28th, it was €133,80 per 100 liters (LTO member price) for 4.000 liters or more. On February 3rd, it was €133,20 per 100 liters.
On the European Power Exchange (Epex Spot), the daily average gradually decreased over the past week. On January 28, the electricity price was €135,83 per MWh and on February 3, it was €97,24.
gas price
Like the oil price, the gas price peaked at €39,29 per MWh on the TTF futures market on January 30th, the highest level in over seven months. At the time of writing (Tuesday afternoon, February 3rd), the price is €32,90 per MWh. That's a 16,3% drop in four days.
This is mainly due to the weather forecasts in Europe, with higher temperatures, including in the Netherlands. For almost the entire week, the National Energy Dashboard's energy forecast predicts lower demand for gas for heating than last week. Analysts also say the ample availability of LNG is a factor. Since the phasing out of Russian gas, much of it has been imported.