“The era of cheap crude oil and gasoline is over”
Prices at the pump have already risen considerably this year and will probably increase further. At least that is the expectation now that oil production is being reduced for a longer period of time.
Refueling will probably become more expensive in the near future. This is what expert Paul van Selms of United Consumers predicts. The recommended retail price, which you usually pay at most at petrol stations along the highway, is currently around €2.17 for E10 petrol. For diesel it is now around €1.97. With the decision of oil cartel OPEC+ to limit oil production for longer, the price could rise further, according to Van Selms. “It’s really impossible to say how much higher it will be, but the era of cheap crude oil and gasoline is over.”
On Sunday, OPEC, together with allies such as Russia, decided to extend the current production cut of crude barrels until the end of June. This involves a reduction of around 2 million barrels per day, half of which OPEC member Saudi Arabia will account for. The intention is to maintain financial flows from oil exports for the so-called OPEC+ countries. What has more influence on the oil price these days, for example, are the attacks by the Houthi rebels in the Red Sea, causing oil tankers to avoid the important trade route. In addition, the war in Ukraine still has a noticeable influence, for example due to the ban on Russian oil by Western countries.
In addition to OPEC+’s decision, China also released oil news this week. That country announced that it will further increase the exploration and production of oil and gas, although it is expected that this will not be easy.
– Thanks for information from Autoweek.nl