Fuel prices are at their lowest level since the start of the war in Ukraine. Three main reasons

Drivers in Poland are observing a gradual reduction in fuel prices at gas stations. The average price of 95 petrol at Orlen stations is currently PLN 6.09 per literwhich means a reduction of more than 50 cents compared to holiday prices. Analysts predict that this trend may continue, although the pace of decline may be moderate.

Network Field introduced a promotion at their HyperOil gas stations in early October. Until October 6, EU95 petrol and diesel customers can refuel for PLN 5.50 per liter.. However, this offer is time limited and only available on selected network stations.

Fuel market experts say that right now prices fuel prices in Poland have reached their lowest level since the start of the war in Ukraine. The average prices of petrol and diesel oil are currently around PLN 6 per litre, and at some stations, especially in the western part of the country, you can find offers around PLN 5.60 per litre.

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The reasons for the cheaper fuel include both the strengthening of the Polish zloty and the reduction in oil prices on world markets..

Fuel market observers wonder if fuel prices will come close to the level of PLN 5.19 per liter promised during the election campaign. Although spot advertising may offer prices lower than PLN 5.99 per liter, analysts believe that average fuel prices across the country are unlikely to fall 80 groszy.reaching the promised level at most gas stations.

The latest data shows a significant drop in oil prices. WTI crude oil futures fell to $66.78 a barrel, down $1.39, or 2.04%. compared to the previous session. This downward movement is particularly visible in the last trading hours, where a significant drop in price can be seen.

Clothes oil it reached a level lower than USD 67, which may indicate further weakening in the market of energy products. It is worth noting that the current price is near the lower end of the 52-week trading range, which is between $65.27 and $90.78 per barrel.

The current situation is part of a longer trend. Oil prices recorded a sharp decline in the third quarter 2024, notwithstanding tense geopolitical situation in the Middle East East. Analysts point out that the slowdown in global demand is the main factor contributing to the reduction in raw material prices.

Brent crude, the global benchmark, ended the third quarter with a decline of 17 percent, that is the largest seasonal decline in a year. In September alone, the price of this raw material decreased by 9%, which is the biggest monthly decline since November 2022. Meanwhile American West Texas Intermediate (WTI) crude oil fell 16%. in the third quarterwhich also represents the biggest quarterly decline since the third quarter of 2023.

Market experts pay attention to it growing tensions in the Middle Eastwhich should theoretically support oil prices. Recently, Israel carried out attacks on targets in Lebanon and Yemen, killing the leaders of Hezbollah and Hamas and hitting Houthi positions. These organizations are supported by Iranwhich raises concerns about the possibility that the conflict will spread throughout the entire region.

Tim Snyder, an economist at Matador Economics, quoted by Reuters, emphasizes that the market is closely monitoring developments in the Middle East. The possible participation of Iran, a major oil producer and a member of the Organization of the Petroleum Exporting Countries (OPEC), could have a significant impact on the global supply of the raw material.

Despite geopolitical turmoil, Weakening global demand is the main factor affecting oil prices. Analysts pay attention to the situation in Chinathe second largest oil consumer in the world. The recently announced stimulus measures in Beijing did not provoke the expected response in the oil market.

Data published at the end of September shows that activity in China’s manufacturing sector contracted for the fifth month in a rowand the rate of growth in the services sector has slowed. This information raises concerns about the state of the Chinese economy and the impact it will have on global demand for oil.

At the same time, the market is reacting to reports of a possible increase in oil supply. Arabia SaudiOPEC’s informal leader, according to some sources, may abandon the unofficial price target of $100 per barrel and is preparing to increase production.