Rare long decline in oil prices: prices at the pump continue to fall

The decline is not over yet

Rare long decline in oil prices: prices at the pump continue to fall

Oil prices have been in decline for a particularly long time. This is clearly noticeable at the pump and fuel prices will probably continue to drop for a while.

The price of oil on the world market has been falling for seven weeks in a row. That’s rare; it is the first time in five years that the oil price has fallen for so many weeks in a row. You will clearly notice this at the pump when you want to fill up your car with fuel. For example, the average recommended price for a liter of gasoline was €2,078 on Friday, according to data from consumer collective UnitedConsumers. That’s about 10 cents less than a month ago. In practice, the price is often much lower. If you look carefully, you can refuel with E10 for less than €1.90 per liter. The price of diesel has also fallen recently. The recommended retail price is now €1,898. It is the first time since the beginning of August that the recommended retail price has fallen below €1.90. Here too, it is offered locally for much less.

Traders expect declining demand, and that has been leading to falling oil prices for some time. For example, the economy in China is not running well, which is partly responsible for a cooling global economy. There is also a recession in other countries, including the Netherlands. If the economy is not doing well, the demand for oil will decrease. Several major oil-producing countries, united in OPEC+, will reduce their production next year. Saudi Arabia and Russia, among others, pump less. They hope this will boost the oil price again. The US is not cooperating with this. The country actually increased its production, which is why oil prices have not risen for the time being.

– Thanks for information from Autoweek.nl

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