Pump Prices Lower Due to Continued Drop in Oil Prices

Fuel prices at the pump are falling as oil prices continue to slide. Oil prices are on track for the third week of losses in a row, the longest streak this year. Concerns about a possible recession in particular have an impact on the oil price because energy demand is usually lower during economic contraction.

According to consumer collective UnitedConsumers, the suggested retail price for a litre of Euro95 is now 2,460 euros. That was 2.464 euros on Thursday. Last month, the suggested retail price for petrol touched a record level of 2,504 euros. The suggested retail price for a litre of diesel is now EUR 2.297, compared to EUR 2.304 on Thursday. Pump owners can deviate from the recommended prices of the major oil companies. Usually, motorists only pay these prices along the highway. Prices are often lower at gas stations elsewhere.

The price of a barrel of American oil fell slightly on Friday morning to $ 105.40. A barrel of Brent oil cost 108.87 dollars. Earlier this week, data came out on consumer spending in the United States, which turned out lower than expected. Spending is by far the largest contributor to the gross domestic product of the world’s largest economy. Central banks’ policies to contain high inflation are also fueling fears of a recession.

The oil price fell by about 8 percent in June. The decline follows a period of sharp price increases due to the war in Ukraine, supply problems and rising demand. The price jump was the reason for US President Joe Biden to persuade producers in the Middle East to increase the production of crude oil.

The organization of major oil-exporting countries OPEC and its allies this week ratified agreements on further increasing oil production. Biden will travel to the Middle East later this month to urge Saudi Arabia and the United Arab Emirates to further ramp up deliveries.