The price of crude oil is falling again. What sounds like an encouraging message to Austrian motorists is rather disturbing to economists: because the fall in prices primarily points to a negative economic situation, oil is an economic indicator. And: because less oil is currently flowing to us from Eastern Europe, the gas stations are already afraid of diesel bottlenecks.
The price for Europe’s most important crude oil, Brent, is currently around 96 dollars (almost 93 euros) per barrel (159 liters, mind you). In the meantime, due to the Ukraine crisis, it had already risen to almost USD 130 (about EUR 126) in March (see chart below).
Fuel prices have been falling for weeks
The decrease also leads to relaxation at the household petrol pumps (sometimes again below 1.80 euros/litre), but the question is how long enough of the now cheaper fuel will be available. According to the ÖAMTC, diesel cost an average of 1,814 euros/litre on Tuesday and the super 1,799 euros. It is the fourth Tuesday in a row that fuel prices have fallen.
Is diesel running out in Eastern Austria?
The transport stoppage via the Russian oil pipeline “Druschba” to Hungary, the Czech Republic and Slovakia is worrying the oil industry: according to Bernd Zierhut, the head of the Doppler company, the largest private operator of gas stations in Austria, the supply in the east of the country becomes scarce.
OMV refinery is slowing down
The problems at the OMV refinery in Schwechat are exacerbating the situation. After a fire on 3 June, he can hardly process oil during maintenance work. Thanks to a smaller factory, production does not come to a complete standstill, but has to be purchased on the world market.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
