The end of summer has once again placed fuels in the spotlight. The average price of gasoline at Spanish pumps was around 1.7 euros per liter last August, maximum levels that had not been paid for a year, when consumers were still benefiting from the general discount by decree on fuel, which has not yet been has hit the ceiling.
Several traders that operate in the hydrocarbon market assure in conversations with EL MUNDO that gasoline will continue to rise, at least until the end of the year, when its price is expected to exceed 1.8 euros per liter. The market discounts another increase of almost 6% in less than four months. The jump is significant, given that Spaniards ended last year paying an average of around 1.4 euros per liter of fuel, with the application of the 20 cent discount that stopped being applied in general since last January 1.
If there were still doubts about the new rise in fuel prices, the CPI data for August released yesterday cleared them all up. The indicator showed a rise in 2,6% in the period, driven largely by the rise in fuel prices.
Multiple factors explain the rise in fuel prices. Firstly, the rise in the raw material itself. OPEC’s decision – which the market attributes mainly to Saudi Arabia – to once again cut its production targets indicates that the barrel of Brent will remain at high levels. “It is foreseeable that Saudi Arabia will increase its production targets in the future so as not to lose too much market share, but it will maintain the barrel of Brent above lto the barrier of 80 or 85 dollars in the medium term“says a specialist in trading of hydrocarbons.
“While supply is falling due to OPEC cuts, demand is rising, driven by different reasons: large economies like the United States are holding up better than expected, tourism has recovered and we are coming from a summer of very high temperatures, historical events worldwide”, explains Sébastien SenegasHead of Iberia and Latam at Edmond de Rothschild AM.