Oil prices fall significantly at the start of the week
Oil prices fell significantly at the beginning of the week – but remain at a high level. A barrel (159 liters) of the North Sea Brent cost 116.50 US dollars on Monday morning.
That was $4.15 less than Friday. The price of a barrel of West Texas Intermediate (WTI) fell $4.21 to $109.69.
The prices were influenced by two developments. China has sent the financial metropolis of Shanghai into a partial lockdown due to a corona outbreak. Such curfews in metropolises of millions regularly weigh on the economic development and the oil demand of the second largest economy in the world.
In addition, the Yemeni Houthi rebels have announced a multi-day ceasefire on Saudi Arabia. In recent days, attacks on Saudi oil facilities have repeatedly raised concerns about the already strained oil supply.
Relief planned due to high energy prices
The situation on the oil market has been considered critical since Russia invaded Ukraine, as Russia, one of the world’s largest oil producers, is subject to severe sanctions. Consumers in Germany are currently also being severely affected by the developments: the prices for petrol and diesel recently reached new highs.
The federal government is therefore planning a comprehensive relief package for citizens. Among other things, the taxpayers should receive a so-called energy flat rate of 300 euros from the employer, which is subject to income tax. In addition, a reduction in fuel tax is intended to lower fuel prices by up to 30 cents per liter.
