Analyst: Fuel Price Drop to Halt, Possible Increase Expected Next Week

Bratislava, 24 October (TASR) – The decline in fuel prices at petrol stations is expected to come to a halt with a potential rise ahead, with XTB financial markets analyst Matej Bajzik expecting fuel prices to stagnate or slightly increase by one to three cents next week due to a sharp rise in oil prices this week. According to the analyst, oil prices rebounded this week from a strong level of $60 (€51.75) per barrel and have risen steeply by almost 7 percent since the start of the week. If this growth continues, Bajzik expects a reversal of the declining trend in fuel prices in Slovakia. "The market is mainly reacting to new US sanctions against Russian oil companies Rosneft and Lukoil, which will restrict dollar transactions and increase uncertainty around Russian oil flows. At the same time, the EU has approved another sanctions package targeting the so-called shadow tanker fleet and confirmed its plan to end imports of Russian LNG," said Bajzik. He also specified that, according to US data, commercial crude oil inventories fell by about one million barrels last week to 422.9 million, around 4 percent below the five-year average for this period. The market, he noted, remains sensitive to news about supplies and inventories, which may cause stronger price fluctuations. "It will be important to monitor to what extent the sanctions will actually translate into lower Russian oil flows to Asian buyers and whether other producers will compensate for the shortfall. Meanwhile, the Organization of Petroleum Exporting Countries (OPEC+) is increasing production only very gradually as of November this year, by about 137,000 barrels per day, indicating an effort to keep the market balanced and avoid a surplus," added Bajzik. mf/df