On Monday, April 20, a barrel of crude oil ended up with a negative price and it continues. What are the consequences for fuel prices at the pump?
This is a historic first on the American markets. The price of crude oil went negative for a few hours. So why such a drop? With the economic crisis linked to Covid-19, the sectors that consume the most oil, such as maritime or air transport, are buying almost nothing. As a result, stocks accumulate to saturation and producers are ready to do anything to get rid of them, even if it means paying to sell.
The price of fuel at the pump is falling
What is, however, the impact on prices at the pump? For the eighth consecutive week, the price of diesel, for example, is down, even if the latter is much more moderate than the drop in oil observed on the stock markets. At the pump, the price of a liter of gasoline is made up for a third of the price of oil and for the rest, mainly taxes.