Apparently, most people around the globe have autos, motorcycles and other vehicles that need gasoline or diesel fuel to function.Still, gasoline and diesel prices around the globe differ dramatically.In this article we will take a look at gasoline and diesel price around the globe, then consider those factors that make these prices differ from country to country, and finally we will consider the near-term prospects of the global oil market together with Masterforex-V Academy.
Gasoline and Diesel Prices
The comparative chart below, courtesy of Masterforex-V Academy, reflects the current prices on gasoline and diesel fuel around the globe:
As you can see, the cheapest gasoline can be found in Turkmenistan (€0.019-0.128 per liter). Saudi Arabia offers the second best price on gasoline - €0.09 per liter. Venezuela is number 3, with €0,14 per liter. Other countries to boast relatively low gas prices are Kazakhstan, Belarus, Russia and the USA.
The highest gas prices can be found in Belgium, Sweden , Italy, Turkey and Norway. The prices range from €1,7 to €1,98 per liter.
It should be noted that the list of countries is incomplete, which means that some countries may have or lower gas and diesel prices.
Factors Determining and Affecting Gas and Diesel Prices
As we have already said, gas and diesel prices can differ a lot around the world. Where does the difference come from? What affects fuel prices inside a certain country?
1. Domestic oilfields. This is the major factor determining fuel prices. Obviously, oil exporting countries can boast lower gas/diesel prices that oil importers.
2. Oil refineries. Apparently, if a country has its own oil refineries, there is no need to import gasoline or diesel. The cost will be lower.
3. Equipment and technology. When it comes to this factor, the situation is ambiguous. On the one hand, cutting-edge equipment and technology allow refineries to reduce the cost of fuels. On the other hand, such (expensive) equipment and technology may need extra spending, which leads to higher prices.
4. Competition. The tougher the competition between certain oil companies in a certain country the lower prices they offer.
5. External policy. Exports/imports of crude oil and oil products along with taxes and duties.
6. Seasonality. The seasonal factor drives markets as well. For example, the demand for gasoline in summer is higher than in winter.
On top of that, all these factors have difference degree of influence around the globe.
Oil Market Outlook
Oil futures strengthened instantly after last weeks’ report indicated a more-than-expected decline in the US oil stocks. The closest level of resistance is located at $106,40/b. A stronger level of resistance is $107,20/40 per barrel. If the price hits the level, it is recommended to go short with stop-loss around $107,55/60 and take-profit and 106. The closest levels of support are 105,80 and 104,20.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of WTI:
