The price of Brent, the oil price we are looking at in Europe, is also at a historically low level, also comparable to that of 2002.
Refuel for 1.35
At the pump you will now also find low prices. In mid-March, the price for a liter of petrol dipped below 1.50 in many places, now it often fluctuates around 1.40, as can be seen on the price comparison site Brandstof-zoeker.nl.
In the Brabantse Best you can even refuel at the Makro for 1.35 euros. A liter of diesel can be found from 1.11 euros.
There are two reasons for the historically low price. First, the corona virus has caused a significant drop in demand for oil. Because we work from home en masse, people drive less by car and airlines keep their devices on the ground.
Many companies are also slowing down, which also leads to a lower demand for oil.
In addition, Saudi Arabia and other oil-producing countries have indicated that they will extract more oil from the ground.
In April, the Saudi state oil concern Saudi Aramco already wants to deliver 12.3 million barrels of oil per day to its customers, which is a record. Russia, in turn, says production will increase by 500,000 barrels a day to 11.8 million, another record.
Arguing Saudis and Russians
Those two countries are two of the major oil producing countries in the world (the US being the other top 3 player). The Saudis and the Russians were unable to agree on production restrictions earlier this month to support the oil price.
The Saudis then said to increase production and to lower prices.
According to market experts, Russia did not want production agreements with Saudi Arabia and other Opec countries to make American shale oil producers miserable. The cost of shale oil producers in the US is higher than for Russia and Saudi Arabia.
Oil prices and oil fund prices plummet
The oil price is now 55 percent lower than at the beginning of the year, and oil-related companies have plummeted. For example, Shell lost 22 percent in March alone and 42 percent this year.
Fugro, which is looking for oil and gas on behalf of oil companies, is also being hit hard. The price already fell by no less than 64 percent this year.