Analysts say fuel prices may stop falling

27.06.2012, 10:16

Despite fuel prices having been falling for the last 2.5 months, only a handful of analysts say they expect fuel prices to continue declining, writes Äripäev.

Also fuel retailers admit further price falls are unlikely.

The price of Brent crude has fallen from 125 USD in March to 90 USD now, the lowest level in the last 18 months.

According to Statoil, petrol prices have fallen 8.9 percent in a year to 1.333 euros per litre and diesel fuel prices have fallen 10.3 percent in a year.

Raimo Vahtrik from Statoil Fuel & Retail Eesti said that most analysts are split whether the price of oil will continue falling because of ongoing oversupply.

Others say it will start growing once the European crisis is resolved and the economies of China and US continue to grow.

Vahtrik said that the consumption of motor fuel has been increasing in a year. "Growth has been fastest in diesel fuel which shows that companies have been more active.

Sale of petrol is somewhat lower than last year, but as fuel prices fall, consumption grows.

Anti Moppel, marketing manager of Olerex, said that fuel prices are likely to remain relatively low because of weak global economy, modest demand in developed industrial countries and sufficient supplies of crude.

Moppel said that one must also take into consideration the impact of political tensions in Iran and the start of the hurricane season on the Gulf of Mexico.