Finland's petrol prices were relatively quite low on Monday.
For example, 95E gasoline was available in the Helsinki metropolitan area for less than 1.60 euros per litre, according to fuel price tracking website Polttoaine.net.
"We haven't seen this price level in four years," said Hanna Kalenoja, the senior advisor in transport and logistics at the Chambers of Commerce.
The lower prices are being attributed to lower crude oil prices but also because of weekly price fluctuations.
According to Kalenoja, petrol prices are typically lower on Sunday and Monday and then — due to changes in demand — prices begin to tick up again on Tuesday and Wednesday.
Prices are also affected by the relatively low number of fuel distributors in Finland.
"[Distributors] closely monitor what competitors are doing. When someone changes prices, others follow suit. This can affect daily prices," Kalenoja explained.
Ups and downs
Crude oil prices plummeted in the spring of 2000, amid fears that the Covid pandemic would shut down the global economy.
Now, petrol prices are as low as they were just before Russia's full-fledged invasion of Ukraine in early 2021, a situation that sent oil prices upwards.
Crude oil prices hit record highs in the summer of 2022, due to the economic sanctions placed on Russia. However, prices have since started to decline, according to Kalenoja.
"At the time, there were major concerns about the global availability of oil. The prices of all oil products started to rise, but the energy market has gradually stabilised as replacement sources for Russian oil have been found,"
Tariff talk effect
Prices decreased more sharply after US President Donald Trump announced plans to impose tariffs on exports from countries around the world — a move that significantly raised global economic uncertainty and disrupted stock market trading.
"The tariff discussion has created great uncertainty about global economic development in the near future. It looks like oil consumption will fall significantly this year and this will have a direct impact on the price of oil," Kalenoja said.
As of Monday, the price of Brent crude oil was hovering around 65 US dollars a barrel.
"At the moment, it seems a trade war may not materialise in the worst-possible scenario, and that negotiations will help to reach solutions," she said.
Supply and demand
OPEC countries have curbed oil production in recent years to keep prices higher, but some members have announced plans to boost production in coming months, a move which has helped bring down prices at the pump.
"The price of oil typically falls whenever it seems like the global economy is slowing down and oil consumption is decreasing," Kalenoja explained.
The US and China are currently negotiating tariff policies. If those talks are successful and if the global economy grows, it could prompt an increase in oil consumption.
While such a scenario could raise fuel prices, they will likely not reach the peaks seen in 2022, according to Kalenoja.
She said there are currently no major concerns around the world about the availability of crude oil.
"Prices are expected to increase slightly in coming years — provided no new crises threaten production," Kalenoja said.
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