The crude oil market is sinking hopelessly into the corona chaos. In the United States, the price of a barrel of crude oil (159 liters) of the American oil grade WTI even went negative for the first time (down to $ 42.32) due to failed futures and massive overcapacity. That means you got money by buying crude oil.
70 percent drop in prices
The price of a barrel of the Brent brand, which is important for the European market, also plummeted yesterday: $ 18.10. This means that the price has dropped by more than 70 percent since the beginning of the year. The main reason here: the massive drop in demand due to the corona crisis with almost unrestricted production.
Fuel price continues to fall
Fuel prices at domestic petrol stations have also rattled off. Not to the same extent as for crude oil, but at least to a 20-year low of 1.033 euros for Super and 1.015 euros for Diesel. That is a minus of 16 percent since the beginning of the year. At many petrol stations, fuel now costs less than 90 cents. But prices are likely to fall even further. As experts explain, developments on the crude oil market are delayed. This means that end consumers can expect further price reductions in one to two weeks.
Christoph Capek, WKO chief mineral oil industry: “Prices longer at this level”
AUSTRIA: Her Capek, why isn’t the fall in prices on the crude oil market having the same impact on end consumer prices?
Christoph Capek: This is mainly due to the high taxes. For a liter of fuel between 57-64 percent are to be paid. So a quarter are taxes, a third product price. The pure crude oil price makes up only 15 percent of the product. So little happens when the price of crude oil rises or falls.
AUSTRIA: In what historical context can we currently classify fuel prices?
Capek: The fuel was last cheap at Christmas 1999. However, we have less of it today: Mobility has been massively reduced due to the virus crisis (note: individual car traffic has decreased by 50 percent).
AUSTRIA: Will the price spiral continue to turn downwards due to the oversupply and the declining economic output?
Capek: There are currently many indications that the price level will remain this way for longer. (zac)
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