Oil price drops below $ 40: fuel cheaper | Financial

Brent lost nearly 5.5% on Tuesday, coming in price just below $ 40 a 158.9 liter barrel. US WTI oil fell 8% to $ 36.60 a barrel.

This put an end to the strong revival initiated by black gold in recent months.

The suggested retail price at the pump, which only serves as a guideline and is not a guarantee, offers, according to the site of interest group United Consumers, a 6 cent drop to € 1,679 per liter today. Diesel drops 5 cents to € 1,271 per liter.

French health care minister Olivier Veran warned Tuesday of the ‘worrying’ developments with the corona virus. The United Kingdom reported considering additional restrictions following persistently high rates of infections.

The lockdowns in the eurozone have already caused the GDP figure to fall by 11.8% in the second quarter. Many companies in southern euro countries are still locked up. With less demand, production from cartels like OPEC leads to price reductions.

The news on Monday that oil giant Saudi Aramco has lowered its prices for supplies of oil to Asian customers more than expected, also hurt the oil price.

Prices for America were revised downwards for the first time in six months. With the steps of Aramco, the demand for oil from these large regions appears to be disappointing.

Suffering from malaise

Brent prices have seen another strong recovery after their low in late April with prices below $ 20 a barrel in recent months. The relaxation of the restrictive corona measures in many countries gave a significant boost to the demand for oil. Extending the production restriction among members of the OPEC oil cartel also contributed to the strong recovery.

The large oil companies, in particular, have suffered greatly from the ongoing slump in the oil market in response to the corona crisis. At the beginning of this year, more than $ 60 was deposited for a barrel of Brent oil.

The petrol price at the pump has risen sharply in recent months with a suggested retail price of € 1.68 for a liter of Euro95. At the beginning of May, there was another drop to € 1.56.

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