- The price of oil reached 110 dollars per barrel, fuels can become significantly more expensive in Slovakia.
- Stabilizing oil above $100 can increase fuel prices by seven cents.
- Due to geopolitical tensions, oil may soon attack or exceed $120.
A significant increase in the price of oil on the world markets to the level of 110 USD (95.147 euros) per barrel (159 liters) was relatively quickly reflected in the prices of fuel in Slovakia in the past. At the beginning of March 2022, after the Russian invasion of Ukraine, the price of gasoline rose above 1.7 euros per liter.
During four weeks, the prices of 95-octane gasoline rose by almost 12% and reached a level of around 1.758 euros per liter. The price of diesel fuel increased by approximately 17% to approximately 1.725 euros per liter. At the same time, the price of oil continued to rise during that period and during the following week it reached approximately 131 dollars per barrel.
According to financial market analyst of XTB company Matej Bajzík may today’s developments on the oil markets once again affect fuel prices in the region. “If oil stabilizes above $100 per barrel, we could see fuel prices rise by around three to seven cents per liter in the coming days,” said Bajzík.
In the neighboring Czech Republic, already this week, they are registering a significant week-on-week increase in prices, Trinity Bank Chief Economist Lukáš Kovanda pointed out. The price of diesel has increased by approximately 20 cents per liter, which represents about a 15 percent increase. Gasoline rose by less than 7%.
If geopolitical tensions in the Middle East continue to increase, oil prices could approach or exceed $120 per barrel, according to analysts. The energy market is currently extremely sensitive to geopolitical news, and volatility may remain elevated in the coming months.
