Comparison site reports rush
Heating oil orders are picking up sharply
May 6, 2022 at 8:19 am
The EU embargo on Russian oil is having an effect: Despite high prices, heating oil customers are currently five to six times more active than usual in May. This is reported by the Heizoel24 platform. However, a mineral oil company association contradicts the observation.
According to the intermediary platform Heizoel24, the prospect of an embargo on Russian oil is causing many homeowners to replenish their own stocks. Since Monday, there has been a sharp increase in the number of orders, said Managing Director Oliver Klapschus. “Customer purchasing activity on the platform is roughly four times the annual average and five to six times higher than in a ‘normal’ May.”
While many customers still ordered the rather small amount of 1000 liters of heating oil in March and April, they are now filling up more often – although the prices are high at around 1.40 euros per liter. “Order quantities between 2000 and 4000 liters, which cover the entire annual requirement of a single-family home, are more popular with consumers,” said Klapschus. Households normally only ordered a small amount of heating oil in May. This year is completely different. “Many tanks in private households are more or less empty, which should keep demand high throughout the summer months.”
However, the Federal Association of Medium-sized Oil Companies (Uniti) has a completely different impression. “We are currently not observing any increased or unusual demand for heating oil,” said a spokesman. That was different in February and March immediately after the Russian invasion of Ukraine. “It is possible that many tanks are still well filled with customers from this time, which could be a reason for the currently quite calm demand,” it said. The association has surveyed some member companies, while Heizoel24 relies on platform data.
The federal government had shown itself ready for an embargo on Russian oil at the weekend, and the EU Commission proposed such a trade ban on Wednesday night. Oil deliveries to the European Union should be largely stopped by the beginning of next year. Germany wants to use the time to create alternatives to Russian oil.
How the oil price will develop is unclear. “It is unlikely that such sweeping refinery and logistics changes will not impact fuel station prices,” said the Fuels and Energy trade association. However, the market and price development depend on a large number of factors. “This includes political decisions as well as the price of oil, the dollar exchange rate, logistics costs, decisions by the major oil-producing countries and consumer behavior.” However, Uniti does not see the supply situation at risk. “Overall, we have good storage capacities for heating oil in commercial tank farms in Germany,” the association said. While natural gas in Germany can only be delivered through pipelines, there are also other transport routes for oil imports.