There is last-minute activity in oil prices, which is effective on fuel prices. Oil fell below $100, falling to $86. The barrel price of Brent oil was last traded at 86 dollars on January 25. The expectation that demand will decrease in the EU and the USA, and the increase in the risk of recession due to high inflation supports the decline in oil prices. After this decline, citizens turned their eyes to gasoline and diesel prices.
PRICE MOVEMENTS IN GASOLINE AND ENGINE
As of September 20, diesel had a discount of 1.14 TL. Gasoline was last increased by 57 cents on September 6 this month, and the liter price rose to 19.23 TL. There was no change in the price of gasoline in the last week. The average liter price in Istanbul is 19.23 TL. Diesel was discounted by 1.13 TL on September 7, and the liter price was reduced to 24.86 TL. There was no change in diesel prices in the last week. After falling below 10 TL in autogas, there is a variation in the liter price according to the regions. Liter price in Istanbul has risen to over 10 TL again. Current price is 10.94 TL.
WHY ARE OIL PRICES DROPPING?
The economic recession concerns that emerged after the central banks’ accelerating rate hike decisions and the increasing dollar were effective in the decline in prices.
While the central banks’ aggressive interest rate hikes continued with the expectation of increasing inflationary pressures on a global scale, the central banks of England, Norway, Switzerland, Taiwan, South Africa, Indonesia and the Philippines increased their policy rates yesterday after the Fed.
The increase in the dollar index, which measures the value of the US dollar against other currencies, also makes dollar-denominated oil more expensive for buyers using other currencies.
However, the geopolitical risks posed by the Russia-Ukraine war, the stalemate in the Iran nuclear deal, and the decline in the US’s strategic oil reserves support the concerns about the supply shrinkage in the markets, limiting the decline in prices.
While it is estimated that the strategic oil reserves of the USA have decreased to the lowest level of the last 40 years, it is recorded that the reserves, which were at the level of 600 million barrels at the beginning of the year, decreased to the level of 427 million barrels.
WHAT ARE EXPERTS SAYING?
Experts predict that oil prices will continue to find support above $80 due to supply risks and shrinking market conditions, but if there is a faster transition to global recession, prices may fall below this level.
It is stated that technically, the range of $ 90.42 to $ 90.59 in Brent oil can be viewed as resistance, and the range of $ 89.97 to 89.69 as support.
HOW MUCH IS GASOLINE AND MOTORINE? (8 SEPTEMBER CURRENT FUEL PRICES)
Gasoline: 19.23 TL
Diesel: 24.86 TL
LPG: 10.62 – 11.07 TL
Gasoline: 19.34 TL
Diesel: 24.97 TL
LPG: 10.94 TL
Gasoline: 19.34 TL
Diesel: 24.99 TL
LPG: 10.74 TL
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