BARREL PRICE. The price of a barrel of Brent seems to have stagnated around 110 dollars for several days. The threat of a European embargo on Russian gas has regained importance in recent days, what impact on the price of fuel in France? We tell you everything.
[Mis à jour le 21 avril 2022 à 16h44] The price of a barrel of oil is presented at 109 dollars this Thursday, April 21. The price of black gold has therefore remained relatively stable for several days, enough to reassure French motorists. Here, in service stations, the price of a liter of diesel fluctuates between 1.85 euros and 1.90 euros. The discount of 18 cents seems to have done good for the wallets of the French, in any case, the latest trends tend to confirm it. What is certain is that the prices charged in March seem very far away, around 2.25 euros per liter of diesel. Remember that the direct effects of the rise in black gold on the price of fuel in France are only appreciable after a period of 8 to 10 days. Despite the last outbreak in March, prices have not started to rise again in France. The various confinements in China can first of all explain this phenomenon. China being the world’s largest importer of crude oil, demand is felt and orders fall, prices with.
“It is necessary to stop oil imports from Russia. This is what we have been preparing for several weeks. To stop this import is to hurt the financing of the war in ukraine.These were the words of the Minister of Economy Bruno the Mayorthis Tuesday, April 19 on the airwaves ofEuropean 1. A wish now affirmed by France, but which is struggling to be shared by all neighboring countries. Some members of the European Union are still hesitating, which makes the operation quite chaotic. Still, on the side of Bruno Le Maire and Emmanuel Macron, the ambition is clear and asserted: “the President of the Republic has been very clear for several weeks. We are trying to convince our European partners to stop oil imports“always at the microphone ofEuropean 1 this Tuesday.
Be careful all the same, the concern does not fall to international authorities. A “global oil supply shock” is even feared by the International Energy Agency (IEA). And the repercussions could be dramatic on prices at the pump in France, despite a lull observed over the past two weeks. For the time being, the few discussions for two weeks between Russia and Ukraine have not been successful, and the threat of a barrel at more than $150 still hovering in the market. To avoid any hiccups in supply, another major concern of the institutions, the IEA plans to release more than 60 million. The organization even suggests that households reduce their consumption by favoring public transport, reducing their speed on the motorway by 10 km/h or even resorting massively to teleworking. Proof if it were needed of the seriousness of the situation, after a month of war in Ukraine. Today, the price per liter of fuel is around 1.90 euros, far from the 2.25 euros offered during the month of March.
Since the start of the week, we have seen a small respite with relative stagnation in prices. They dropped back below 100 dollars at the start of the week before rising again significantly. Prime Minister Jean Castex announced two aids on fuel, Wednesday March 16, during the press conference presenting the resilience plan. First, a discount of 15 cents on fuel for all French people from April 1 and for 4 months. Then, more help from 35 cents per liter of fishing fuel for fishermen hard hit by the price explosion. Aid valid from April 17 to July 31 to allow them to go back to sea in decent conditions.
- March 7, 2022: $139 the barrel
- March 8, 2022: $128 the barrel
- March 10, 2022: $110 the barrel
- March 15, 2022: $98 the barrel
- March 16, 2022: $100 the barrel
- March 17, 2022: $106 the barrel
- March 18, 2022: $109 the barrel
- March 21, 2022: $111 the barrel
- March 22, 2022: $118 the barrel
- March 23, 2022: $116 the barrel
- March 24, 2022: $120 the barrel
- March 25, 2022: $120 the barrel
- March 28, 2022: $113 the barrel
- March 29, 2022: $112 the barrel
- March 30, 2022: $111 the barrel
- March 31, 2022: $109 the barrel
- April 1, 2022: $103 the barrel
- April 4, 2022: $105 the barrel
- April 5, 2022: $109 the barrel
- April 6, 2022: $107 the barrel
- April 7, 2022: $102 the barrel
- April 8, 2022: $101 the barrel
- April 11, 2022: $100 the barrel
- April 12, 2022: $100 the barrel
- April 13, 2022: $104 the barrel
- April 14, 2022: $107 the barrel
- April 15, 2022: $111 the barrel
- April 19, 2022: $112 the barrel
- April 21, 2022: $109 the barrel
The war in Ukraine casts doubt on the supply and price of energy. Aside from gas, one question remains central and arouses curiosity, what is the price per barrel of oil in this mess? Rising almost constantly since December 2021, the price of a barrel is now stable around 100 dollars, measured exactly at 109 dollars this Thursday, April 21.
When you fill up with gas, the taxes represent 60% full. And these taxes, they, in spite of the war in Ukraine, fluctuate rather little. In particular the domestic consumption tax on energy products (TICPE), which simply represents the fourth revenue of the State, behind VAT, income tax and corporate tax. the fuel price leaving the refinery, it corresponds to 1/3 full of gasoline. Notably influenced by the price of a barrel of oil on international markets. Gas station attendants will have no choice but to pass on this increase to the price per litre.
Keep in mind that there is a lag time between the increase in the purchase price of a barrel of oil and the real impact on prices at the pump. This time varies 8 to 10 days approximately. In an attempt to curb this phenomenon, several aids have been put in place and distributed by the Government. In particular the inflation bonus granted to 38 million low-income households, as well as the revaluation of the mileage scale for 2.5 million tax households. The threat of a embargo European on Russian gas could cause the price of a barrel of oil to explode at $300or even more.
According to INSEE, the Russia is the 3rd world producer of oil with 10 million barrels per day, of which 2 million transit to Europe. The Franceshe matters 9% of its crude oil since Russia. And the countries which could substitute the major role of Russia in the export of oil are not legion. Nigeria, Angola and Libya, for example, are not even meeting their own production targets. the Nigeria (9.6% of oil imports in France), theAlgeria (10.3%), and theSaudi Arabia (11.8%) remain crucial trading partners for France to whom the government could turn more to supply the country.
“We have significant strategic oil stocks which cover almost three months of consumption and allow us to deal with supply disruptions. The French are not at risk of running out of fuel or gas for heating in the coming months” declared the Minister for the Ecological Transition, Barbara Pompili on February 23. The European Union could even decide to release part of its strategic oil stocks to counter the rise in fuel prices in the face of this major market disruption. A decision taken only three times in history, for example after Hurricane Katrina in the United States.