2023-11-28 14:30:59
After several months of increases, followed by a relative calm, fuel prices have started a downward curve in France. Indeed, according to the weekly report from the Ministry of Ecological Transition, published on November 27, fuel prices are falling.
Thus, the liter of unleaded 95 cost on average 1.78 euros last week, the same price as diesel. For its part, unleaded 95-E10 is sold at 1.7828 euros per liter. It fell by 3.6 cents compared to the previous week. This price, however, is the lowest since the start of 2023. The price of the Super SP98 is also falling. It lost 3.2 cents, going from 1.9004 to 1.8688 euros per liter.
Furthermore, diesel prices remain the lowest on the market. They have certainly declined, but not as much as other fuels. Diesel only lost 2 cents compared to the previous week. It sells on average at 1.7812 euros, falling below 1.80 euros for the first time since July. This decline in fuel prices comes at a time marked by the collapse of oil prices. The price of Brent is, in fact, around 80 USD and that of American West Texas Intermediate crude barely reaches 75 USD.
Oil prices fall
The oil market is therefore impacted by the decline in demand due to the slowdown in the world’s largest economies. The doubts that have arisen regarding the cohesion of the organization of oil exporting countries and their allies (OPEC+) have also worsened the situation. This organization is showing signs of cracking with the postponement of its meeting concerning the production quotas to be applied in 2024. Scheduled for November 26 in Vienna, this meeting will finally take place by videoconference on the 30th of the current month.
However, according to several analysts, members who have already reduced their production will have to extend their commitment, but there will be no new cuts. OPEC+ will also have to demonstrate its willingness to resort to further production reductions in the event that demand declines in the coming months. Prices are therefore unlikely to spike in the near future unless there is a major geopolitical event.
In France, fuels should maintain their current prices within a few cents. It must be said that these prices do not reflect the reality of the market, given that several brands have decided to sell at cost price, which lessens the impact of oil prices which, despite the decline, remain in a high range.
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