Oil Companies Enjoy Lower Fuel Price Caused By The COVID-19 Pandemic

Many events over the past several months have shaken the state of the oil industry. The first part of 2020 saw some surprising increase in oil prices due to the unstable supply, followed by the decision of OPEC countries to reduce the production of oil, thus further blowing up the price of oil in the world market. Unfortunately, there is one event that nobody ever thought would take place this year, which severely impacted the supply and demand ratio of oil and fuel. You probably know what this is: the COVID-19 pandemic.

The effect of the pandemic on the oil industry is something that we have never seen since the Second World War. However, according to the latest reports, oil buyers and refiners have found an opportunity from the pandemic-stricken industry to save the market. For one, refiners are reportedly having a small respite from oil buyers, in which hedge funds and other international oil buyers have begun buying huge amounts of fuel.

Refiners’ Respite From Cheaper Fuel Price May Not Be Enough

Over the past week, oil buyers are said to have focused on buying up to 20 million barrels of US gasoline and diesel, as well the European gasoil. This sounds like a good news to the refiners, although experts believe that this respite is not enough to make their current situation from the pandemic a little better. As the COVID-19 pandemic rages on in hundreds of countries for over 4 months, some nations have decided to lift travel bans in order to let their economies rebound. In this case, there will be a little uptick in transport demand, thus spelling trouble for the refiners.

If ever another serious wave of coronavirus infection is reported in large parts of the world, we can expect that another crippling effect in the oil industry would be felt. With the low prices of fuel in place due to the lower demand for refined oil products, this would affect the supply and demand of fuel once more. However, the effect may not be as bad as in the first part of the pandemic. It is also worth mentioning that there are also other kind of fuel that is readily available today, such as the cleaner and environment-friendly fuels.

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Countries In The World With The Cheapest And Most Expensive Fuel

Our industries today heavily relies on energy to power up all sorts of machineries and engines. One of the main sources of energy, fuel, is considered to be a country’s prized wealth, as those countries with their own depot of fuel have no problem in maintaining their industries as the price of fuel is kept at the low side. However, for those countries who still need to import fuel, their economy is vulnerable to price surges.

This does not bode well for the ordinary people, as they are the ones who suffer when the fuel price goes up. Some might even wish to be in a Middle East country so the fuel price won’t be an issue in their daily cost of living. Although, there is a chance that people living in another country are having it much worse with ridiculously expensive fuel. To give you an idea about the fuel prices around the world, here are the list of countries with the cheapest, as well as the most expensive, fuel.

Countries With Fuel So Expensive You May Choose To Walk An Entire Mile Instead Of Firing Up The Car

First in the list is is United Kingdom, with fuel priced at $1.67 per litre.  Many British people complain about the seemingly exaggerated high cost of fuel in their country, but the sad truth is that this current fuel price is actually lower compared to the previous decades. Of course, there is hope that the fuel price will become much more reasonable in the coming years, but for now, the British people will have to deal with this reality and look for ways to remedy this situation. Perhaps finding the ideal times to refuel their cars will be a good start.

Next on the list is Portugal with a stunning $1.72 per litre. Fuel prices in Portugal mostly follows the trend in other European countries, but the price is surely much higher in the Iberian Peninsula because of the ISP taxes imposed by the government, which is a levy on oil products.

The Fortunate Countries With The Cheapest Fuel Prices

If you are even jokingly deciding to move to another country to be saved from expensive fuel prices, this list could help. First in this short list is the United States in America with $0.71 per litre. All thanks to their highly modernized technology, The United States is the world’s largest oil producer, ahead of second-placed Russia. The fun fact is fuel prices in the US have actually increased over the years due to imposed taxes, but there is hope that the price will stick on the low side for the meantime.

Next is Sudan with $0.14 per litre. Amazing, isn’t it? This is no brainer since Sudan is one of the countries with known huge reserve of oil in the world, perhaps only next to Middle East countries like Bahrain and Saudi Arabia. The sad thing, though, is that Sudan’s economy has yet to improve with this large oil reserve.

And now, the country with the cheapest fuel is none other than Venezuela, with a surprising $0.01 per litre! You might think that this is just a tidbit from one of the funniest prank videos on the internet today, but this is the real deal. For some perspective in the United States, a single dollar would be enough to buy 92 fuel tankers.