Over the past week, fuel prices recorded another slight decline. The price of 95-octane gasoline dropped by 0.01 PLN per liter, while diesel fell by 0.04 PLN per liter. Brent crude quotations on the Rotterdam exchange fell by just under one dollar per barrel, dropping below USD 66 — a level last seen between late June and early July.
The decline came in response to the conclusion of talks between Trump and Zelensky, as well as in anticipation of upcoming trilateral negotiations that could potentially lead to a peace agreement and the lifting of sanctions on Russian oil — thereby increasing its availability on global markets. However, the drop in Brent crude was only moderate, as markets remain skeptical about a quick ceasefire due to ongoing key disputes between Russia and Ukraine.
The market is also reacting to President Trump’s announcement of a new tariff on India’s purchases of Russian oil, set to take effect at the end of August. This means there is limited time to reach an agreement that would prevent disruptions in the global oil market. On the other hand, a sharper fall in prices was averted by the recent attack on the “Druzhba” pipeline, which transports Russian oil to Hungary and Slovakia.
If oil prices remain at their current levels, fuel prices should stay relatively stable, with any fluctuations unlikely to exceed just a few groszy per liter. However, if Brent crude were to stay below USD 64 per barrel for several consecutive weeks — as was the case in April and May — a more significant drop in fuel prices could be expected.
Commentary prepared by Marcin Wawrzkiewicz, Country Manager at Malcom Finance in Poland
Source: CEO.com.pl
