Why are fuel prices likely to rise again?

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The drop in oil prices has helped reduce the price frenzy at gas stations. Unfortunately, the trend could reverse at the end of the year.

You will have to get used to paying a high price for fuel. If the average price of gasoline and diesel has been falling for several weeks, this should only be temporary with an expected rise in oil prices by the end of the year.

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“There is a need for 1 million more barrels per day so that the stock markets do not fall”, summarizes this Wednesday in BFM Business Alexandre Andlauer, financial analyst at Kpler. However, if the inventory goes down, the price goes up.

“Unfortunately, we have to get used to a high oil price,” he stresses, and specifies that without state aid “we will easily be between 2.20 euros and 2.50 euros” at the pump.

Except recession…

“Oil prices are between 90 and 120 dollars and there is quite a risk that we will go over 120 dollars, he continues. Regarding the prices at the pump, it is a little different because you go through the box of the refinery and we know that in Russia it will be penalized and therefore we run the risk of having a greater difference between the price of oil and the refined price”.

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Above all, the situation should continue for several years, “unless there is a global economic recession, which means a sharp drop in demand and at that time the supply would be sufficient in relation to the demand. But that would be bad news” , he concludes. the analyst

In fact, initiatives to combat climate change have dramatically reduced investments in oil infrastructure in recent years, resulting in an almost inexorable rise in the price of a barrel over the next decade.

As a reminder, the government will introduce a discount of 30 cents per liter of fuel in September, which will succeed the discount of 18 cents effective from April 1. But this device is not built to last.

Author: Thomas LeRoy
Source: BFM TV

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