In one of his songs in containment mode, the aptly named Didier Super says it: “Now that we no longer need diesel, that’s it, prices have gone down”. And it’s true, since the beginning of the year, the rates at the stations have plummeted.
The Covid-19 pandemic caused oil prices to plummet, with the result that prices for lead-free and diesel fuel fell significantly… which we hardly benefit from with containment measures.
While most of the decline was in March, prices continue to fall slowly but surely, with a small penny earned in the past week. According to the latest survey by the Ministry of Ecological Transition, on April 17, the liter of diesel was displayed on average at € 1.2132 in France. For the unleaded 95 E10, which represents the majority of unleaded sales in France, it was € 1.2514. For diesel, you have to go back to September 2017 to have a similar level. And for the SP 95 E10, it’s the lowest since March 2016!
Are we going to be able to “take advantage” of these reduced prices, while deconfinement is hoped for in three long weeks? Chances are, oil prices remain low. The main producing countries had however managed to find common ground to reduce the supply of black gold, with almost ten million barrels per day less over the period May / June.
But this agreement, at least to maintain prices, did not have the expected effects. The Covid-19 significantly slowed the economy, causing a drop in demand for oil and at the same time an increase in stocks. Oil prices also continue to fall. By the end of the day, a barrel of Brent, the benchmark for Europe, fell to $ 26.
But that’s nothing compared to the American barrel of WTI oil whose price has dropped below … $ 0! This concerns the WTI for delivery in May, but the reserves are approaching saturation. WTI barrel for June delivery was $ 22.
Evolution of average prices at the pump
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