Lower Gasoline Prices – but Warning of Price Increase

The petrol price is falling to under 18 kronor, the lowest level since mid-January. But a major military conflict in the Middle East can quickly drive up fuel prices again.

» Updated: Thu 19 Sept 2024 20:32 CEST

» Published: Tue 6 Aug 2024 10:40 CEST

Lower Gasoline Prices – but Warning of Price Increase
Photo: Pontus Lundahl/TT

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The spot price of 95-octane gasoline at manned stations is lowered by 25 öre to 17.94 kronor per liter. The diesel price is lowered by the same amount to 17.54 kronor per liter.

And the main reason for this is the weak economic data from the USA last week, which indicated a weaker American economy than expected, says Christian Kopfer, commodity analyst at Handelsbanken.

This has caused stock markets around the world to stumble and at the same time, the dollar has weakened, he says.

As a result, oil prices have generally gone down, which has driven down fuel prices.

But one thing that could make oil prices skyrocket – is if there were to be an extended military conflict in the Middle East, says Christian Kopfer.

The Middle East is the world's most important region when it comes to oil production. But right now, the market is not at all worried about it.

If there were to be a large-scale military conflict in the Middle East involving a major oil-producing country, such as Iran, it would lead to oil prices over 100 dollars, says Christian Kopfer.

Then there would be an immediate effect on fuel prices. Probably the dollar would strengthen as well in that situation, and the krona would weaken slightly.

And if the oil price were to go up to 150 dollars somewhere, then fuel prices would go up to 25 kronor.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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