5:13 29 November 2024
Middle East truce eases oil
The recent ceasefire between Israel and Hezbollah, brokered by the U.S., has stabilized oil prices, signaling potential relief for Polish drivers. The truce, effective November 27, follows an agreement for Israeli troops to withdraw from southern Lebanon gradually, allowing local forces to take over.
Oil prices, which had climbed earlier in November, steadied after the announcement, with West Texas Intermediate crude trading at $68 per barrel and Brent at $72.50. Analysts, including Dawid Czopek of Polaris FIZ, predict oil could fall to $60 per barrel in 2024, potentially reducing Polish fuel prices by 7%, to around PLN 5.50 per liter.
Polish fuel costs remain influenced by factors like the złoty's weakening exchange rate against the dollar, driven by geopolitical and economic pressures. Future oil prices also hinge on Middle Eastern stability, particularly in the Strait of Hormuz, a critical chokepoint for global supplies.
