Prices at the pump for motorists will rise now that oil prices have risen sharply due to the unexpected decision by the oil cartel OPEC+ to cut production further.
According to market experts, an increase in the recommended prices of petrol and diesel by at least 2 cents per litre is expected before Tuesday.
OPEC+ announced on Sunday that it would cut production by more than 1 million barrels per day from May. Oil prices then shot up by more than 5 percent. According to Van Selms, large oil-producing countries such as Saudi Arabia also have to deal with high inflation, and by reducing production, oil prices can be propped up. This, in turn, yields more for the treasury of the oil-producing countries united in OPEC+.
But the motorist will feel this in the wallet. “If you have to fill up, it is better to do it today than tomorrow,” says Van Selms. Analysts even think the oil price could continue to rise to USD 100 per barrel. But, according to the expert, that is not unrealistic. “We may be on the verge of a significant oil price hike.”
Previously, oil prices fell sharply because of the stock market unrest due to the banking sector’s problems. There was fear that these problems could lead to a weakening economy, resulting in less strong demand for oil. This was also noticeable in the prices at the pump, which fell considerably.
According to UnitedConsumers, the suggested retail price for a litre of Euro95 is now 1,989 euros. For diesel, 1,752 euros per litre must be paid. Pump holders can, however, deviate from the recommended prices of the major oil companies. Motorists usually only pay those prices along the highway. Prices are often lower at pumping stations elsewhere.
Russia said the production cut by OPEC+, of which it is a part, will help the global oil market. According to the Kremlin, it is important for the energy market that prices remain at a “good level”. Russia itself has announced that it will extend a production cut of half a million barrels per day until the end of this year.