Gasoline prices rise after flare-up of war between the US and Iran
Higher demand for fuel over the summer is also helping to push up prices.
The US attacks have intensified over the past week, and it can be felt at the gas pump. (Photo: © Thomas Traasdahl, Ritzau Scanpix) 44 minutes ago
If you commute by car or have just filled up the tank to drive off on summer vacation, you have probably noticed it.
Fuel prices are on the rise again here at home, after the conflict between the US and Iran has escalated anew.
Looking at OK's list price overview, which is typically lower than the price we pay at the pumps, it has risen by 70 øre from 17.09 last Sunday to 17.79 today.
This is partly due to the renewed unrest around the Strait of Hormuz once again pushing up the oil price.
Read also: Analyst: Trump's Hormuz tax will cause gasoline prices to rise significantly (https://www.dr.dk/nyheder/udland/analytiker-trumps-hormuz-afgift-vil-faa-benzinpriser-til-stige-markant)
However, according to Ole Sloth Hansen, commodity strategist at Saxo Bank, oil prices are also being pushed upward because the world's refineries are already under pressure.
Due to ongoing attacks on oil refineries, Russia has reduced the country's exports of diesel and fuel, and during the crisis, China has done the same, he says.
- Refineries around the world are working at full capacity at the moment.
- This means that even though the crude oil price is relatively cheap, what comes out after the refinery has processed it is extremely expensive, he says.
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Summer creates bottleneck problem
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At the same time, summer is the peak season for travel by plane and car both within and outside Europe, and the increased demand for fuel means the market becomes more vulnerable.
- We have a bottleneck problem that means what is being produced can just barely keep up with what is being demanded, he says.
For that reason, we will also have to wait until the autumn months before we can expect a decline in both demand and price, according to Ole Sloth Hansen.
- Unless, of course, the risk that the war in the Middle East flares up completely and the Strait of Hormuz is shut down entirely, he says.
Read also: Trump has notified Congress: The war against Iran has formally resumed (https://www.dr.dk/nyheder/udland/trump-har-orienteret-kongressen-krigen-mod-iran-er-formelt-genoptaget)
Last week, US President Donald Trump said at the NATO summit in Ankara that he considered the ceasefire over. And on Tuesday night, he informed Congress that the war against Iran had resumed.
Since then, the oil price has risen from $83.25 per barrel to $88.
Today, it costs 16.59 kroner per liter at the pump at the OK gas station, while the price is 16.79 kroner per liter for gasoline.
You can follow developments in the Middle East in our live blog here:
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