Fuel prices hitting an eight year high

[Tony116]

I just checked the real-time crude oil prices online:
https://oilprice.com/oil-price-charts/#prices

Brent is currently trading at $107.93 per barrel, which is an increase of around 2.6x from the Trump times. That said, the Russian crude is trading at a very heavy discount. ESPO is currently trading at $85.66 per barrel, which is 21% lower when compared to the Brent prices. Sokol crude is currently trading at $89.87 per barrel. Once again, 17% lower when compared to Brent.

This is good news for importers of Russian crude, such as China and India. But at the same time, it shows the ineffectiveness of the sanctions. Russian crude is still being sold and the Europeans are importing crude from as far as Venezuela, increasing their own costs.

I never liked the idea of sanctions, I was one of the first ones to point out their ineffectiveness, which will ultimately hurt Europe more than it will hurt Russia. As you've pointed out, Russia continues exporting oil to in other Asian countries, who are of course, willing to take advantage of the lower price.

Correct!. Europe will be the one to suffer the most because it obeys the US to impose harsh sanctions on Russia. Europe is paying a very high price to buy oil from Venezuela and Iran. Besides, they also have to lift the embargo against Venezuela to be able to import oil from them.

I also predicted that sanctions would not have a big impact on Russia, because they have big business friends from Asia. China and India are very willing to buy oil from Russia at bargain prices.

Uh, Russia is a superpower, you can't do much to actually hurt them, they could easily be self-sustainable, while their Asian neighbouring countries are huge, they could use the higher supply of oil. It's not like they imposed sanctions in a small European country, I don't get if government are actually that stupid to believe that sanctions would affect Russia.

We're going to suffer the consequences of this war, potentially worse than Russia themselves, we'll have to get used to a long-term period of higher living costs.

it may have immediate impact on russia but they will recover. and the heavily affected of this rising of fuel prices are small consumers. it is almost doubled the price now in my area. maybe instead of using the car, just walk for short distances. lol at least exercise for us.
but on a serious note, i believe, we are already experiencing one of the effects of this war. and the prices may possibly go up more in the next coming months. but the salary is still the same. this is not fair...

If this war drags on, we are the ones who will be affected the most, no one else. In my country, everything has increased in price, many families have to tighten their spending to be able to afford a month with a meagre salary. As you said it wouldn't be fair if the prices went up while our wages didn't increase a cent.
I pray that Russia and Ukraine will soon reach peace so that everything will return to normal. After the covid pandemic, we have had to go through so much loss and pain. Don't let the pain linger.

[mich]

I can not believe how high these gas prices are getting, I mean it's at an 8 year high? What's next 10 year high? Personally, I don't have the money to buy a new car but if I did I would definitely get a hybrid or an electric.
For my work, I have to travel 30 minutes in each direction and that's 5 days a week. These prices are really taking a chunk out of my paycheck and it will definitely impact my spending habits on any non-essential purchases.
And, if these gas prices keep going up I may become a minimalist, I'm not kidding. I can't remember the last time I went shopping for clothes and I really need some new stuff but now is not the time. 

[Franctoshi]

The situation I believe is currently hitting almost every country due to sanctions impose on Russia and hence causing supply shock.
here in my country due to the hike in price of fuel recently though we're one of the oil blessed nation, it has drastically increased the price of transportation and base on past experiences, whenever the price of fuel is increased in my country it usually affects the price of goods and commodities , so this price hike has even worsen the case here coupled with the current inflation ravaging the Economy. But all this for my view is coinsidently happening to help shift the world's dependency on fossil fuel and into Greener energy they have been advocating for years now.

[bakasabo]

I can not believe how high these gas prices are getting, I mean it's at an 8 year high? What's next 10 year high? Personally, I don't have the money to buy a new car but if I did I would definitely get a hybrid or an electric.
For my work, I have to travel 30 minutes in each direction and that's 5 days a week. These prices are really taking a chunk out of my paycheck and it will definitely impact my spending habits on any non-essential purchases.
And, if these gas prices keep going up I may become a minimalist, I'm not kidding. I can't remember the last time I went shopping for clothes and I really need some new stuff but now is not the time. 

Hope that you will become just a minimalist, not a follower of ascetism.

On https://oilprice.com/oil-price-charts/#prices, I see red and green indicators every day, but prices on fuel station, that I see from my window are only going up. I have even noticed, that the different in price between diesel and regular fuel is 1 euro cent only. How can this even happen? How can "clean" fuel cost same as diesel?

Fuel prices and price growth in general are already effecting my life. I have refused vising McDrive, even though McDonalds is 500m away from me (maybe my taste have changed) and I no longer get out from shops with full cart of food.

[bakasabo]

This is non-sense. I was passing by petrol station about 10 minutes ago and noticed that diesel is for 5 cents expensive then gasoline. Whole my entire drivers career I have experienced that diesel was always cost 10-20 cents less than gasoline. After 1 months of war, annual price position changed. That is gonna hit hard, as our cars are mostly diesel, I would say that diesel to gasoline car ration is 7:1.

[Ultegra134]

I can not believe how high these gas prices are getting, I mean it's at an 8 year high? What's next 10 year high? Personally, I don't have the money to buy a new car but if I did I would definitely get a hybrid or an electric.
For my work, I have to travel 30 minutes in each direction and that's 5 days a week. These prices are really taking a chunk out of my paycheck and it will definitely impact my spending habits on any non-essential purchases.
And, if these gas prices keep going up I may become a minimalist, I'm not kidding. I can't remember the last time I went shopping for clothes and I really need some new stuff but now is not the time.  

If I had 40-50k to buy an electric car, I honestly wouldn't mind fuel prices that much, unfortunately, electric cars are out of reach for the average consumer. Filling up your car takes a huge chunk out of your paycheck, personally, it would take at least 1/8th of my salary, which is ridiculous. In the summer, I used to fill up my car at least twice a month, due to going back and forth, I don't want to be miserable and stay home all day.

If this war drags on, we are the ones who will be affected the most, no one else. In my country, everything has increased in price, many families have to tighten their spending to be able to afford a month with a meagre salary. As you said it wouldn't be fair if the prices went up while our wages didn't increase a cent.
I pray that Russia and Ukraine will soon reach peace so that everything will return to normal. After the covid pandemic, we have had to go through so much loss and pain. Don't let the pain linger.

Unfortunately, it doesn't look like it's going to end anytime soon, while the current sanctions put on Russia are hurting the western citizens more than they're hurting Russia's economy. Salaries aren't expected to rise anytime soon either.

[pokeronlinestatus]

The situation I believe is currently hitting almost every country due to sanctions impose on Russia and hence causing supply shock.
here in my country due to the hike in price of fuel recently though we're one of the oil blessed nation, it has drastically increased the price of transportation and base on past experiences, whenever the price of fuel is increased in my country it usually affects the price of goods and commodities , so this price hike has even worsen the case here coupled with the current inflation ravaging the Economy. But all this for my view is coinsidently happening to help shift the world's dependency on fossil fuel and into Greener energy they have been advocating for years now.

The post of the OP was before the war and there were no sanctions that happened that time but now that there is, it worsens the situation making the price of the fuel triple'd or more. Do you live in a country where the oil supply are sufficient? that must be in India? because it's said that India is the second largest supplier of oil next to Russia, and after them would be Iraq/Iran but why would the price will hike there when your one of the suppliers?

Price should be in normal range only or can be lower but the effects of the sanction are not only limited to oil, that's why we also feel an increase in the price of the primary goods and others items.

[LUCKMCFLY]

I just checked the real-time crude oil prices online:
https://oilprice.com/oil-price-charts/#prices

Brent is currently trading at $107.93 per barrel, which is an increase of around 2.6x from the Trump times. That said, the Russian crude is trading at a very heavy discount. ESPO is currently trading at $85.66 per barrel, which is 21% lower when compared to the Brent prices. Sokol crude is currently trading at $89.87 per barrel. Once again, 17% lower when compared to Brent.

This is good news for importers of Russian crude, such as China and India. But at the same time, it shows the ineffectiveness of the sanctions. Russian crude is still being sold and the Europeans are importing crude from as far as Venezuela, increasing their own costs.

I never liked the idea of sanctions, I was one of the first ones to point out their ineffectiveness, which will ultimately hurt Europe more than it will hurt Russia. As you've pointed out, Russia continues exporting oil to in other Asian countries, who are of course, willing to take advantage of the lower price.

Correct!. Europe will be the one to suffer the most because it obeys the US to impose harsh sanctions on Russia. Europe is paying a very high price to buy oil from Venezuela and Iran. Besides, they also have to lift the embargo against Venezuela to be able to import oil from them.

I also predicted that sanctions would not have a big impact on Russia, because they have big business friends from Asia. China and India are very willing to buy oil from Russia at bargain prices.

Well this is a problem that continues to escalate, so it is difficult to say that they can buy oil from Venezuela when their US counterpart or ally is buying oil from Colombia when they first made some rapprochement with Venezuela, I think that at this point all of Europe should guarantee consumption Of them, they also have a serious problem with respect to gas, so due to this Colombia does not have sufficient capacity to supply all the demand, what Europe can do is quickly look for Venezuela to buy, otherwise prices will rise greatly, and gas could become much more expensive still.

[Ultegra134]

Oil prices are starting to ease, as members of the International Energy Agency (IEA) agreed to join in the largest oil reserve release. That resulted in WTI Crude dropping just below $100, while Brent Crude trading at $104 per barrel. For some reason, I cannot understand, oil prices have frozen since yesterday and haven't updated, if anyone knows, I'd appreciate shedding some light.

Petrol here is still trending at approximately €2.08-2.10 per liter, while diesel at €1.80 - 1.90, which is also subsidized by the government (€0.12/liter). Hopefully, I believe that there will be some kind of relief in gas pumps, however, fuel costs will be far from what they were a few months ago.

[bakasabo]

It has been a while since we have discussed fuel prices. I've noticed, that during last 2 weeks fuel prices on gas stations are going down every day. During 2 weeks, petrol and diesel prices have decreased for 20%. In addition, diesel started again to cost less than petrol. What about the situation in your country?

I havent been following news about oil prices lately (did not want to get disappointed once again), but I see they are decreasing. I am sure that I havent seen lately news about new suppliers, partnerships and etc on my local news portals, also the Ukraine-Russian war continues. But the situation with fuel is improving. What is this? Improvement or preparation for even worse ?

[Sithara007]

It has been a while since we have discussed fuel prices. I've noticed, that during last 2 weeks fuel prices on gas stations are going down every day. During 2 weeks, petrol and diesel prices have decreased for 20%. In addition, diesel started again to cost less than petrol. What about the situation in your country?

I havent been following news about oil prices lately (did not want to get disappointed once again), but I see they are decreasing. I am sure that I havent seen lately news about new suppliers, partnerships and etc on my local news portals, also the Ukraine-Russian war continues. But the situation with fuel is improving. What is this? Improvement or preparation for even worse ?

Oil prices are slightly down.. but still hovering around the $95-$100 level. American prices, as usual are around $5 to $10 per barrel lower than the Brent. Synthetic crude from Canada is trading at $70-$75 per barrel, while Saudi and the other GCC nations are selling their crude at a premium of $10 to $15 per barrel. But here in India, the gasoline/diesel prices haven't gone down. The oil companies are refusing to reduce prices any further, because they are claiming that they are incurring a loss of around $0.20-$0.25 per liter due to pricing restrictions imposed by the government.

[Smack That Ace]

It has been a while since we have discussed fuel prices. I've noticed, that during last 2 weeks fuel prices on gas stations are going down every day. During 2 weeks, petrol and diesel prices have decreased for 20%. In addition, diesel started again to cost less than petrol. What about the situation in your country?

I havent been following news about oil prices lately (did not want to get disappointed once again), but I see they are decreasing. I am sure that I havent seen lately news about new suppliers, partnerships and etc on my local news portals, also the Ukraine-Russian war continues. But the situation with fuel is improving. What is this? Improvement or preparation for even worse ?

Yes, oil prices have been down for a while, I don't remember exactly but maybe 2 weeks as you say. As far as I know, this decline is not related to the hostility of Russia and Ukraine but to the US having a second consecutive negative growth. As a result, fears of a recession will reduce spending significantly worldwide, driving down energy prices.

It is difficult to talk about the situation now until the end of the year, but personally I see that things will get worse, once the war continues, things will not get better.

[virasisog]

It has been a while since we have discussed fuel prices. I've noticed, that during last 2 weeks fuel prices on gas stations are going down every day. During 2 weeks, petrol and diesel prices have decreased for 20%. In addition, diesel started again to cost less than petrol. What about the situation in your country?

I havent been following news about oil prices lately (did not want to get disappointed once again), but I see they are decreasing. I am sure that I havent seen lately news about new suppliers, partnerships and etc on my local news portals, also the Ukraine-Russian war continues. But the situation with fuel is improving. What is this? Improvement or preparation for even worse ?

Yes, oil prices have been down for a while, I don't remember exactly but maybe 2 weeks as you say. As far as I know, this decline is not related to the hostility of Russia and Ukraine but to the US having a second consecutive negative growth. As a result, fears of a recession will reduce spending significantly worldwide, driving down energy prices.

It is difficult to talk about the situation now until the end of the year, but personally, I see that things will get worse, once the war continues, things will not get better.

I noticed the oil price decrease in our country as well about a week ago. It lightens up slightly our struggle due to expensive oil prices. But the price of primary goods in our country is still increasing despite the oil price decrease. I think it's something that our government should focus on. I just hope that price won't strike high again because it really hits the global economy negatively and ordinary people are suffering.

[Sithara007]

Yes, oil prices have been down for a while, I don't remember exactly but maybe 2 weeks as you say. As far as I know, this decline is not related to the hostility of Russia and Ukraine but to the US having a second consecutive negative growth. As a result, fears of a recession will reduce spending significantly worldwide, driving down energy prices.

It is difficult to talk about the situation now until the end of the year, but personally I see that things will get worse, once the war continues, things will not get better.

The prices are NOT down due to economic slowdown. I had posted about this multiple times. Americans have been emptying their Strategic Petroleum Reserve (SPR) at a record pace and this has resulted in a slight oversupply in the market. And Biden administration is doing this so that Democrat party would perform better in the mid-term elections. But the problem is that once the mid-term elections are over (in less than three months), they will stop doing this. And the prices will rebound once that happens.

[Smack That Ace]

Yes, oil prices have been down for a while, I don't remember exactly but maybe 2 weeks as you say. As far as I know, this decline is not related to the hostility of Russia and Ukraine but to the US having a second consecutive negative growth. As a result, fears of a recession will reduce spending significantly worldwide, driving down energy prices.

It is difficult to talk about the situation now until the end of the year, but personally I see that things will get worse, once the war continues, things will not get better.

The prices are NOT down due to economic slowdown. I had posted about this multiple times. Americans have been emptying their Strategic Petroleum Reserve (SPR) at a record pace and this has resulted in a slight oversupply in the market. And Biden administration is doing this so that Democrat party would perform better in the mid-term elections. But the problem is that once the mid-term elections are over (in less than three months), they will stop doing this. And the prices will rebound once that happens.

As you say, behind this oil price drop there is a political motive and it comes from the US. The politics of their country is becoming rotten and corrupt, they do everything for their power and they don't care about the feelings of others. They do not use any tricks to achieve the goal. If it's true what you say, the CPI, it's all fake, the crisis will come back soon and the inflation hasn't really peaked yet.

[Ultegra134]

I'm glad that someone revived this thread, I was planning to do it myself too. Prices have dropped from €2.40 down to €2.05 in my area. It's still extremely expensive but at this point, it's better than nothing. However, as Sithara007 mentioned, this is probably going to be a temporary drop in prices, since the USA is selling its oil reserves.

Since yesterday, Brent and WTI crude oil have seen major spikes in their prices, with Brent being close to surpassing $100/barrel.

[Sithara007]

As you say, behind this oil price drop there is a political motive and it comes from the US. The politics of their country is becoming rotten and corrupt, they do everything for their power and they don't care about the feelings of others. They do not use any tricks to achieve the goal. If it's true what you say, the CPI, it's all fake, the crisis will come back soon and the inflation hasn't really peaked yet.

I am more worried about the chances of recession if the fuel prices remain high for an extended period of time. Despite the massive selloff from SPR, the crude oil prices have remained at a level of ~$100 per barrel. And after the midterms, we can expect it to go up even further. This will result in higher inflation, unemployment and weakening of the national currencies. Tax rates will go up, and consumer spending will decrease. All of this can be prevented. Biden just need to remove the new regulations, so that the American shale oil producers can pump more oil. But as we know, he will never do that.

[bakasabo]

I'm glad that someone revived this thread, I was planning to do it myself too. Prices have dropped from €2.40 down to €2.05 in my area. It's still extremely expensive but at this point, it's better than nothing. However, as Sithara007 mentioned, this is probably going to be a temporary drop in prices, since the USA is selling its oil reserves.

Since yesterday, Brent and WTI crude oil have seen major spikes in their prices, with Brent being close to surpassing $100/barrel.

I agree that this is temporary. Dont know how often fuel prices in your country change, but in mine, in winter, petrol is always more expensive than in summer. I think this is due to bioadditives in fuel. But, in summer people travel more, and it will be more profitable (and unfair) to have more expensive fuel. Anyway, little decrease is better than no price decrease. I advice you to make most of that opportunity.

[Sithara007]

I agree that this is temporary. Dont know how often fuel prices in your country change, but in mine, in winter, petrol is always more expensive than in summer. I think this is due to bioadditives in fuel. But, in summer people travel more, and it will be more profitable (and unfair) to have more expensive fuel. Anyway, little decrease is better than no price decrease. I advice you to make most of that opportunity.

Interesting that you mentioned the topic of bioadditives. Here in India, we have already moved from 5% ethanol blending to 10% blending for petrol (gasoline). By April 2023, the target is to supply gasoline with 20% ethanol content. I am not sure whether it will work smoothly. The government claims that existing gasoline engines can run on 20% ethanol blend without any modifications. I am more skeptical on this. But then, we don't have any other choice. India imports around 85% of the crude oil it consumes and the prices are skyrocketing now.

[Ultegra134]

I'm glad that someone revived this thread, I was planning to do it myself too. Prices have dropped from €2.40 down to €2.05 in my area. It's still extremely expensive but at this point, it's better than nothing. However, as Sithara007 mentioned, this is probably going to be a temporary drop in prices, since the USA is selling its oil reserves.

Since yesterday, Brent and WTI crude oil have seen major spikes in their prices, with Brent being close to surpassing $100/barrel.

I agree that this is temporary. Dont know how often fuel prices in your country change, but in mine, in winter, petrol is always more expensive than in summer. I think this is due to bioadditives in fuel. But, in summer people travel more, and it will be more profitable (and unfair) to have more expensive fuel. Anyway, little decrease is better than no price decrease. I advice you to make most of that opportunity.

It's the opposite here due to the tourism season during the summer. Increased demand, increased prices. The most I had seen before the current crisis was €1.80/liter of 95 Unleaded petrol, in August. In the meantime, that would look cheap now.

It's astonishing that crude oil prices saw a 2-day increase, from $94 to $99 for Brent oil, and gas prices have already increased in my area. On the other hand, it took days for it to actually drop when it had reached a new low after the war started. That's pure speculation.