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Global oil prices showed a sharp decline at the end of April, and analysts estimate that this month could end up being the biggest drop in the last three years. This was reported by Reuters.
On Friday, 26 April, futures for Brent crude oil fell by 0.6% to $87.75 per barrel, while US WTI fell to $83.15. Since the beginning of the month, both brands have lost about 3.5% in price, the deepest decline since March 2021.
The main reasons were:
- growth in supplies from OPEC+ countries;
- easing fears of an immediate escalation in the Middle East;
- expectations of higher interest rates in the US, which limits demand for energy.
Experts note that geopolitical risks, although still present, are now playing a secondary role, as investors are more responsive to economic signals from the US and China.
For Ukraine, a drop in global oil prices could mean lower fuel prices at the pump in the short term. However, the final price will also be affected by the exchange rate and the government’s tax policy.
