Fuel prices should drop at gas stations next week. This was stated by Ondrej Greguš, XTB financial markets analyst. If the agreement between the US and Iran on the opening of the Strait of Hormuz is confirmed, prices will continue to fall, and if the negotiations fail, on the contrary, growth pressure will return.
“The situation on the Slovak fuel market remains stable. Supply is secured, Slovnaft is operating at full capacity. Current prices at gas stations are beginning to reflect the drop in oil prices from the last few days. Within the V4, we remain the most expensive for gasoline (1.801 euros/l compared to the Czech Republic 1.782 euros/l, Hungary 1.685 euros/l and Poland 1.512 euros/l)with diesel (1.718 euros/l) we are more expensive than the Czech Republic (1.677 euros/l), comparable to Hungary (1.754 euros/l), significantly cheaper is Poland (1.586 euros/l). Unlike some V4 countries, Slovakia currently does not apply direct price ceilings or tax breaks for fuel,” he explained.
The key event of the week, according to the analyst, was a significant drop in oil prices, fueled by growing optimism surrounding the negotiations between the US and Iran. President Trump said during the week that negotiations were going well, with Iranian media subsequently reporting that a possible deal could include the gradual resumption of shipping through the Strait of Hormuz as well as the easing of the US naval blockade.
“However, the situation remains tense. Indeed, the US has carried out further military strikes against Iranian targets in the region, while Iran has accused Washington of violating the ceasefire. However, markets had limited reaction to the escalation as Secretary of State Marco Rubio stressed that diplomacy was still ongoing. According to Iranian media, the negotiations in Doha continue in a generally positive atmosphere. Traffic through the Strait of Hormuz remains restricted, but Iran has already allowed additional vessels to pass through, including LNG tankers. Energy markets thus remain extremely sensitive to any diplomatic signal and volatility persists,” added the XTB analyst.
