This is the cheapest place to fill



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The crude oil market is hopelessly sinking into crown chaos. In the United States, the price of a barrel of crude oil (159 liters) of the US oil grade WTI was even negative for the first time (up to $ 42.32) due to failed futures and massive overcapacity. That means you have money buying crude oil.

70 percent drop in prices

The price of a barrel of the Brent brand, which is important for the European market, also plummeted yesterday: $ 18.10. This means that the price has fallen by more than 70 percent since the beginning of the year. The main reason here: the massive drop in demand due to the corona crisis with almost unrestricted production.

The price of fuel continues to fall

Fuel prices at domestic service stations have also risen. Not to the same extent as for crude oil, but at least to a minimum of 20 years of 1,033 euros for super and 1,015 euros for diesel. That is less than 16 percent since the beginning of the year. At many service stations, fuel already costs less than 90 cents. But prices are likely to drop further. As experts explain, developments in the crude oil market are delayed. This means that end consumers can expect further price reductions in a week or two.

Christoph Capek, Head of the WKO Mineral Oil Industry: “Longer Prices at This Level”

AUSTRIA: Her Capek, why does the drop in prices in the crude oil market not have the same impact on final consumer prices?

Christoph Capek: This is mainly due to high taxes. For a liter of fuel you must pay between 57-64 percent. So a quarter is taxes, a third price of the product. The pure price of crude oil represents only 15 percent of the product. So little happens when the price of crude oil rises or falls.

AUSTRIA: In what historical context can we currently classify fuel prices?

Capek: Fuel was last cheap at Christmas 1999. However, today we have less: mobility has been greatly reduced due to the virus crisis (note: individual car traffic has decreased by 50 percent).

AUSTRIA: Will the downward price spiral continue due to oversupply and declining economic output?

Capek: There are currently many indications that the price level will remain this way for longer. (zac)

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