The highs and lows and highs of fuel prices
This article examines the volatility of global oil prices, attributing fluctuations to geopolitical tensions in the Middle East and market speculation rather than seasonal demand. It highlights how specific events, such as conflicts in the Strait of Hormuz, impact costs for consumers.
Why it matters
Understanding oil price drivers is essential for global economic stability and personal financial planning, as energy costs directly influence inflation and household budgets.
Oil prices are not cheap in the summer and expensive in winter.
The price is driven by the global economy and speculation on the futures market, not the weather.
As the futures market is very speculative and reactive to factors including global demand, shipping and exchange rates, future prices are difficult to predict.
Before the Middle East conflict began, the cheapest price for 500 litres was €473.43 on 18 January, according to oilprices.ie.
It recorded the highest price for 500 litres at €903.00 on 7 April, around five weeks after the US and Israel attacked Iran and the Strait of Hormuz closed.
This week, on Thursday 8 July the average cost for 500 litres was €595.81.
On that day global oil prices rose briefly above $80 a barrel in light of US President Donald Trump saying the ceasefire with Iran was over, and after renewed strikes in the Middle East.
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