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Oil Prices Break Psychological Barrier: When Will Fuel Prices Rise at Gas Stations?

ENERGYOil Prices Break Psychological Barrier: When Will Fuel Prices Rise at Gas Stations?

Fuel prices in Poland remain stable. Over the past week, the average prices of gasoline and diesel dropped by 2 groszy per liter, offsetting recent increases. Meanwhile, wholesale prices have shown a slight uptick but remain at levels seen in late November and early December.

On the global markets, however, significant developments are unfolding. Brent crude oil prices on the Rotterdam exchange rose by over $3 in a week, surpassing the psychological barrier of $80 per barrel on Monday, January 13. The last time this level was recorded was in July of the previous year.

The changes in the oil market extend beyond just pricing. Traders relying on algorithmic investment strategies have recently suffered noticeable losses. Since July 2024, the share of oil in these investors’ portfolios has dropped from 4% to just 2%. This shift indicates a return to fundamental analysis, with real supply and demand data now taking precedence over forecasts generated by mathematical models.

Experts note that this renewed focus on fundamental market analysis is reflected in the rising oil prices observed since the beginning of the year. Concerns about supply shortages have become central, driven by the Trump administration’s announcement of stricter sanctions on Iran. These sanctions could significantly limit the availability of oil from the Middle East, overshadowing earlier fears about weaker demand from China.

The rising oil prices are not just a result of market dynamics but also of geopolitical maneuvers. With impending U.S. sanctions on Iran and their impact on global oil supply, the Trump administration may gain greater bargaining power in negotiations with Russia regarding sanctions and oil supplies.

Despite global tensions and rising crude oil prices on international markets, Polish drivers can expect stability at gas stations in the coming week. Forecasts suggest that changes in gasoline and diesel prices will not exceed 2-3 groszy per liter.


Source: Manager Plus

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