Poland: Increases in gasoline prices are likely to break records in the coming weeks

This week gasoline prices broke the latest record from the beginning of March by nearly 4% and it is highly probable that the current record may be broken in the coming weeks. The situation on the diesel oil market looks more favorable now, diesel should not go up the price, according to market comments from BM Reflex analysts.

Below is the market comment from BM Reflex:

Dynamic changes in the prices of crude oil and ready fuels in the world markets have a direct impact, and most importantly, very quickly, on the level of fuel prices in the domestic market. Recent changes mean that those who refuel at petrol stations will pay about 40-50 groszy per liter more today. This is an increase in the amount of increases noted earlier between April 15th and May 12th.

On May 19, fuel prices were at an average level: 95 lead-free gasoline - 7.32 PLN / l, 98 lead-free gasoline costs 7.75 PLN / l, diesel oil 7.27 PLN / l, and autogas 3.64 PLN / l. During the week, gasoline prices increased by 0.42 and 0.50 PLN / l, diesel oil decreased by 0.10 PLN / l on average, and autogas by 0.10 PLN / l.

Gasoline prices this week broke the latest record from the beginning of March, clearly by nearly 4%. We are at the beginning of the period of increased demand for gasoline and therefore we can say with high probability that we will witness the breaking of the current record in the coming weeks. The situation on the diesel market looks more favorable now. For now, diesel should not become more expensive.

In the coming days, we will not be threatened by such drastic increases as this week, but in some stations a price increase of several groszes can still be noted. In the case of diesel, there is room for further reductions to the average level of PLN 7.20 / l.

Another week of price volatility and consolidation on the crude oil market. On Friday morning, Brent crude oil is around $ 111 / bbl, which is practically the same level as last week. Russian Urals crude oil is still around $ 35 / bbl cheaper than Brent crude oil.

During the 29 MPGC (Middle East Petroleum & Gas Conference), the Minister of Energy of Saudi Arabia stated that the world is struggling with a shortage of sufficient refining capacity, which is pushing up the prices of petroleum products

US crude oil inventories, according to US EIA data, fell from 3.4mbbl to 420.8mbbl during the week, which is 14% lower than the 5-year average so far. Oil inventories decreased by 1.2 million bbl and the difference to the 5-year average is already 22%.

According to the Chinese General Customs Administration, in April China imported 10.5 million bbl / d of crude oil, which is 6% more than a year ago. Russian oil imports increased by 5% on a monthly basis, to 1.6 million bbl / d. China is considering increasing purchases of Russian oil to replenish its reserves. China, despite the sanctions, has already decided to buy 2 million bbl of Iranian oil, which will go to the reserve system.

Source: BM Reflex and ISBnews