- 7 Feb 2024 9:23 AM
- Hungary Matters
The beauty of it is that it happened against a backdrop of all kinds of bad news, writes Növekedés.hu. The economic portal’s analysis concludes that this could soon be reflected in petrol prices in Hungary.
They pointed out that during last week, both major oil types, WTI (West Texas Intermediate) and Brent, recorded their biggest weekly price falls since November.
Prices have thus returned to mid-January levels, meaning that the market has given back the subsequent rise.
The news affecting the oil market was not expected to be good: transit through the Red Sea and Suez Canal remains problematic due to possible attacks by the U.S., and Iran’s missile strikes could have a negative impact on the supply of Persian Gulf oil, the analysis summarized.
The portal points out that many players have bought up stocks on the futures market, but supply has not fallen, that may have led to the current price drop.
By far the biggest oil producer today is the U.S., which often increases its production in a presidential election year (hence also in 2024), but since the start of the Russian-Ukrainian war two years ago, it has been trying to peak production anyway.
The price of domestic petrol follows the oil price and the fluctuations of the forint (HUF) exchange rate with a lag of a few days, thus on Friday the price was still rising and the average price of 95-liter petrol was above 600 forints (1.55 EUR).
However, the big oil price drop will now have an effect, so fuel prices could fall by up to 20 forints per liter.
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