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A few days ago gasoline prices at some gas stations were above the psychological limit of 2 francs per liter of unleaded fuel. An additional burden on inflation-hit Swiss wallets.
But now there is relief! “Gasoline prices in Switzerland are likely to fall soon,” predicts UBS raw materials analyst Giovanni Staunovo (47).
Crude oil prices are falling
How come? On the one hand, crude oil prices have fallen significantly in the last few days. For example, the Brent variety is almost 8 percent lower than at the beginning of the week.
Staunovo blames the rise in interest rates in the US and the resulting fear of recession for the decline. These have a negative impact on oil demand growth, although this demand is currently still very robust. The price collapse was fueled by investors who made a handsome profit by covering their positions in oil futures. Add to this Wednesday’s US data, which showed a sharp rise in inventories.
“The sharp decline in the US gasoline price has probably led to gas stations not wanting to buy too early and hoping for even cheaper prices,” Staunovo believes.
Prices have not been adjusted yet
Looking at the TCS petrol price radar, it seems that pump prices have remained high so far. “The price of crude oil is only one factor in gasoline pricing,” explains TCS spokesman Massimo Gonnella. Since crude oil is traded in dollars, the dollar exchange rate also plays an important role. And it is now trading higher again, making crude oil more expensive in francs.
There are also refinery prices that are quite high due to the high demand for heating oil before the winter months. Transport costs from Dutch ports to Switzerland also affect the final price. The currently low water levels in the Rhine are not helping. It is also possible that importers, who previously purchased fuel at high prices, will reduce existing stocks.
Gonnella doesn’t want to make a blanket prediction about if and when pump prices might drop due to many factors. However, it will also be assumed that prices will decrease if the trend in crude oil markets is confirmed.
Crude oil prices have risen recently due, among other things, to OPEC countries cutting production volumes. However, crude oil exports increased again in September. Especially since crude oil demand in Europe is at its highest level since 2011.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
