DOil prices fell on Wednesday. Traders cited the political tensions between the United States and China as the reason. At midday, a barrel (159 liters) of North Sea Brent cost $ 35.65. That was 52 cents less than on Tuesday. The price of a barrel of the US grade West Texas Intermediate (WTI) fell 38 cents to $ 33.97.
The mood was marred by new critical remarks by President Donald Trump to China. The background to this is the efforts of the People’s Republic to restrict Hong Kong’s special rights through a security law. In addition, the world’s two largest oil consumers are arguing over who is to blame for the corona pandemic. The ongoing risk of their trade dispute is also smoldering in the background.
Nevertheless, oil prices have clearly recovered from their slump at the beginning of the global corona crisis in recent weeks. The decisive factor is the prospect of an increasing demand for crude oil if the numerous corona restrictions are relaxed. On the other hand, large producing countries such as Saudi Arabia and Russia have significantly reduced their production.
Against this background, the market should soon look towards the “OPEC +” meeting on June 9 and 10, wrote analyst Eugen Weinberg from Commerzbank. The positions of the two leading oil countries still gaped. For example, Saudi Arabia wants to maintain the cuts in May and June for the time being, while Russia would like to gradually increase production as planned from July onwards. In contrast to the meeting in March, Weinberg expects a compromise: “The consequences of the recent price war are still too present for everyone involved.”
However, the days of falling fuel prices due to the Corona crisis seem to be over. Gasoline of the type E10 and diesel have become more expensive in the weekly comparison of the ADAC for the third time in a row, as the traffic club announced on Wednesday. Before that, prices had been falling for weeks.
On Tuesday, a liter of Super E10 cost a nationwide daily average of 1.196 euros per liter, 1.9 cents more than a week earlier. Diesel rose by 1.1 cents to 1,063 euros. Despite the renewed increase, refueling is still significantly cheaper than before the outbreak of the corona pandemic.