Oil price falls to 12-month low

The decline in the price of oil continues, but drivers are not aware of it at the petrol stations in Germany.

The oil price continues to fall.

Dhe drop in oil prices continues: The Brent variety from the North Sea cost $ 61.52 per barrel (159 liters) on Friday, 1.7 percent less than the day before, making it cheaper than ever this year.

“There is currently an oversupply in the market,” wrote the analysts at the Jefferies investment bank. Therefore, the bottom has not yet been reached. According to data from the provider Refinitiv, supply has exceeded demand since the beginning of October. During this period, the oil price fell by almost a third.

The reason for this is speculation that the global economy will cool down, among other things because of the tariff dispute between the United States and China. At the same time, American production volumes are increasing from one record high to the next. According to experts, production there will exceed the mark of twelve million barrels per day for the first time in 2019. Against this background, Saudi Arabia appeals to its OPEC partners to cut funding. The export cartel will meet for deliberations on December 6th.

Image: FAZ

The price decline of the past few weeks is not reflected in the fuel price: According to comparison portals, gasoline has cost an average of around 1.50 euros for months. One reason for this are supply bottlenecks due to the dry summer and the low water in the Rhine. Since some barges could no longer enter the ports, refineries along the river have already had to reduce their production.