The oil price has fallen for the fifth week in a row in the past week. The price of a barrel of oil fell to its lowest point since 2003. The raw material price is falling due to a combination of falling demand due to the coronavirus outbreak and an increase in production.
The price of a barrel of Brent oil fell by 5.3 percent on Friday to $ 24.95 (22.34 euros). US oil lost 4.8 percent and ended the week at $ 21.51. The oil price thus fell to its lowest level since 2003, at the time of the US invasion of Iraq.
The fall in the oil price started after negotiations between OPEC and Russia about production restrictions broke down. Saudi Arabia then sparked a price war by offering the oil at substantial discounts. In addition, demand for the commodity fell due to the outbreak of the COVID-19 pandemic.
Due to the lower oil price, the price at the pump also drops. The average suggested retail price for a liter of Euro 95 in the Netherlands fell by 0.2 cents on Saturday to 1.605 euros, writes consumer platform UnitedConsumers. At the end of February this was still 1.78 euros.