By Chrysostomos Tsoufis
A breath before $ 119 a barrel is its price oilwhich has increased during the year by 51%as it was at $ 78 a barrel on the last day of 2021. The revaluation reaches 71% if compared to the same period last year, when the barrel did not cost more than $ 69.
With these oil prices, those of gasoline have also been launched. Unleaded in Greece has reached sales of 2.26 euros / liter on average shaking in the air the budgets of households and businesses that are already affected by the inconceivable cost of electricity bills.
The situation may get worse. The looming agreement on imposing an embargo on Russian oil Even with the separation of deliveries by sea and those by pipeline (to satisfy Hungary) it is expected to further reduce Russian exports of black gold. In such a scenario the Bankof America considers that the oil price would be much higher than 150 euros / barrelbringing their nightmarish scenario closer and closer 3 euros / liter in unleaded and in GREECE!!
Moreover, despite the G7’s calls, OPEC has no intention of accelerating oil production growth for a number of reasons. First and foremost is that not all its member countries can do it since the necessary investments have not been made. But mostly the reasons are political. The big oil-producing countries do not want to … accept orders from the West, on the one hand, Russia is also a member of OPEC, and none of the others wants to “hurt” it. The … official excuse however used by the lobby of oil-producing countries is that there is no market imbalance since supply meets demand.
Demand, however, is expected to increase after Chinamany cities are preparing to go out of quarantine and economic activity will be restored, while May 30 – the day of remembrance – is for the US the beginning of the summer season during which the demand for fuel is at its peak.