Oil market prices fell by more than 5 percent on Wednesday. This is the largest decline since August last year. You are now paying $85 (about €81) for a barrel of North Sea oil. Lower oil prices could be beneficial for motorists.
The fact that oil is less expensive is because traders believe that demand will decline. Interest rates are currently rising, and this is often not good for the economy, for example because borrowing becomes more expensive. When economic activity is lower, demand for oil also decreases.
Recently, the price of oil rose to its highest level in about ten months. Even the price of a barrel of oil is threatening to become more expensive than $100. This level has not been reached since the summer of last year.
If oil becomes cheaper, the price at the pump may fall as well, which is good for drivers. Petrol and diesel have become increasingly expensive in recent months.
However, there has been a clear change in the past two weeks. For example, the average recommended price for one liter of petrol today is €2,234, according to figures from consumer group UnitedConsumers. That’s nearly 7 cents less than two weeks ago. Diesel has also become less expensive, although this represents a decrease of only 3 cents.