“We have seen a huge increase in purchases of home heating oil since the invasion of Iran and NIOF distributors’ have coped well, despite the obvious issues with supplies and the increased cost of product.
That demand has now been satisfied, and we have seen prices drop slightly due to market movements. The improving weather has helped slow demand, but the future still looks uncertain.
Even if the war ends this month, there is unlikely to be any cargoes of refined product from the Persian Gulf arriving in Europe for 4-6 weeks. This region accounts for around 40pc of the region’s jet fuel (kerosene) imports and oil companies are looking to the US and Nigeria to try and replace this ‘lost’ product.
In terms of pricing, if we see a rapid resolution we could see prices fall back over the summer months, but a prolonged “oil shock” could lead to higher costs for a longer period”, added David