Already PLN 7 per liter is the price of diesel fuel at Polish petrol stations. Gasoline costs a little less. The situation is most likely not to improve soon, unless the world crude oil market corrects significantly.
Rising oil prices
On March 5, the price of a barrel of crude oil reached $ 116.57. The last time crude oil prices hit this high level was in 2008, one week after Lehman Brothers’ spectacular collapse.
At that time, however, the world had access to the oil of the Russian Federation. This country is the second largest exporter of this raw material after Saudi Arabia. The price of a barrel has soared in recent days mainly as a result of Russia’s war with Ukraine. It was already growing a few weeks before the start of military operations, as the market sensed the tension related to Russian forces gathering from three sides of Ukraine.
Apart from US and European sanctions, the price increases are also caused by the possibility of introducing an embargo on Russian oil. This will mean a huge supply gap in the market of this commodity, which will result in high price increases. Iran is a chance to stabilize the situation on the crude oil market.
Iran will come into play?
The OPEC + countries agree on the level of oil production. Each country has a certain limit. Iran, which is subject to numerous sanctions by the West, also belongs to the group of these countries. They include a strict limit on oil exports. However, there are many indications that in view of the ongoing war, the West will want to reach an agreement with Tehran on this matter.
Well-informed journalists, OPEC + believe that an agreement will be signed early next week, which will significantly increase the supply of Iranian crude oil. The goal is naturally to partially compensate for the deficiencies it would cause no oil from Russia.
Also read:
Switzerland has adopted sanctions against RussiaAlso read:
“They are like a declaration of war.” Putin scares the WestAlso read:
Energy security in the face of Russian aggression
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