According to him, high fuel prices and fear of economic recession have started to reduce consumption throughout Europe, which in turn exerts pressure on the price of both crude oil and finished products. “Demand for oil products, especially fuel oil, has been reduced by the drop in the price of natural gas and the warm autumn. The storage tanks of the European oil plants are full of crude oil due to the decrease in demand,” Kärsna explained.
According to him, the oil embargo no longer causes great fear in the markets. “In general, buyers have annual volume contracts with suppliers. Companies and factories have had time since mid-summer to find new partners and sign contracts with them for the next year”
The ban on the import of Russian oil products, which comes into effect in February, primarily affects the trade in diesel fuels. “There is still a lot of speculation regarding the availability and price of diesel fuel, because the European factories also have to supply Ukraine, where many refineries have been destroyed. At the same time, the factories supplying the Estonian market have promised to guarantee the agreed quantities.”
According to Circle K, the probability of a decrease in the price of motor fuels has increased, despite the fact that there may be a shortage of diesel fuel. “Demand for diesel fuel is driven by large-scale industry, where they are trying to find alternatives to gas which has been used so far, and this is mostly diesel fuel or fuel oil,” described Indrek Sassi, head of motor fuel pricing at Circle K Estonia. In addition, diesel fuel price pressure continues in the Nordic countries due to the switch to winter fuel.