Analysts fear a decline in demand for oil due to a slowdown in the global economy and not only. How changes in the market affect oil in the Czech Republic, let’s try to figure it out in this article.
Oil price forecast for 2023 lowered by Goldman Sachs. In early 2023, an oversupply may form, which will reduce the risks of price spikes in winter. Forecasts for Brent prices in the 1st and 2nd quarters of 2023 have been lowered to $90 and $95 per barrel, respectively, from $115 and $105.
The cost of futures for Brent oil on the London ICE Futures exchange rose by 1.71% to $87.63 per barrel, as evidenced by trading data. Brent was below $80 for the last time on December 20, 2022.
The contract price for WTI crude oil for February delivery on the New York Mercantile Exchange fell by 2.65% to $74.89 per barrel.
Another negative factor for oil prices was a milder winter in the US and Europe, Bloomberg notes. Temperatures are now above their average for this time of year, bringing fears of an energy crisis down in the market.
Analysts noted that the recovery in demand in China and in emerging markets in general will contribute to price growth.
The head of the International Energy Agency, Fatih Birol, said energy markets could suffer this year if the Chinese economy recovers as financial institutions expect.
A traffic spike in China ahead of the Lunar New Year bodes well for fuel demand after a two-week holiday.
The cost of 1 liter of gasoline in the Czech Republic in 2023 practically does not lag behind the prices of neighboring countries. Among the Central European states, the highest prices are set in Germany and Switzerland. Traditionally, the cost of gas in Europe, as well as throughout the world, is 2–2.5 times lower than the price of gasoline.
Compared to last year, petrol is now 1.61 crowns more expensive per liter, while a year ago motorists paid four crowns less for diesel.
Diesel fuel in the Czech Republic is always cheaper than 1 liter of petrol. This feature must be taken into account by motorists who go on an independent road trip around the country.
Read also: Record high inflation in the Czech Republic since 1993