Fuel Price Forecast for 2024: How Do Currency Exchange and Oil Influence Price Cuts?

Written by Paulo Nogueira

Published on 03/01/2024 at 08:45

Em 2024, a expectativa é um preço de combustível bem mais comportado se for depender do câmbio e petróleo, conforme análise de Bruno Pascon, – Todos os direitos: MoneyTimes

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“Fuel Prices in 2024 Should Be More Stable Due to Exchange Rates and Oil, but With Pressure from Demand. Average Price Fluctuating at R$ 4.85.”

Fuels have been a matter of great concern, mainly related to fuel prices. The expectation is that this year the scenario will be much more stable, according to Bruno Pascon, executive director of the Brazilian Center for Infrastructure (CBIE). The assessment is that the market expects a much lower economic growth cycle, which is ‘basically the economies of the West due to monetary tightening, which increased interest rates from 0% to 5%’, he states. According to Pascon, without pressure from demand, the market will look at the supply side. Furthermore, he emphasizes that, contrary to what was expected, China has not pressured oil prices, just as winter in the northern hemisphere has not shown any seasonal signal of higher prices, whether for gas or oil.

In the overall picture, according to the analyst, the higher biodiesel blend, which tends to have a greater price pressure effect at the pump (between R$ 0.9 and R$ 0.18), and the effect of reinstating PIS/Cofins charges starting in January, is more than compensated by the commodity scenario, with oil prices down and the exchange rate under control. The impact of the exchange rate and oil is essential in this scenario, with the expectation that the price of oil this year will be between US$ 75 and US$ 80 per barrel, compared to US$ 82 in 2023. ‘Obviously, the price of oil can be volatile due to geopolitical events, but at least fundamentally, the expectation is for lower average prices,’ he comments.

Fuels: Rising Prices and Economic Impacts

The current scenario has been marked by strong pressure on fuel prices, which has significantly impacted consumers’ wallets. The price of fuel, which was already fluctuating around R$ 4.85, has faced greater pressure recently, resulting in a significant increase. This demand pressure, coupled with seasonal signals of higher prices, has driven the average price up, causing impacts on the economic growth cycle.

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Additionally, the approval of tax reform has contributed to a monetary tightening, which in turn has led to an increase in interest rates. Consequently, demand pressure has driven up oil prices. The higher biodiesel blend has also had an impact, due to the effect of reinstating PIS/Cofins charges.

In light of this scenario, weaker economic performance has been observed as consumers are facing difficulties with rising fuel prices. The dependence on the exchange rate and oil has also exerted influence, resulting in an environment of uncertainty and rising prices.

Therefore, it is crucial for policymakers and economic authorities to adopt measures to address this price pressure to avoid negative impacts on the economic growth cycle. Seeking solutions that can ease the pressure on fuel prices is essential to ensure economic stability and the well-being of citizens.

Source: MoneyTimes

Fuel Price Forecast for 2024: How Do Currency Exchange and Oil Influence Price Cuts?

“Fuel Prices in 2024 Should Be More Stable Due to Exchange Rates and Oil, but With Pressure from Demand. Average Price Fluctuating at R$ 4.85.”

Fuels: Rising Prices and Economic Impacts

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Fuel Price Forecast for 2024: How Do Currency Exchange and Oil Influence Price Cuts?

“Fuel Prices in 2024 Should Be More Stable Due to Exchange Rates and Oil, but With Pressure from Demand. Average Price Fluctuating at R$ 4.85.”

Fuels: Rising Prices and Economic Impacts

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Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Australia prepares to dredge 96.5 million m³ in Moreton Bay to deepen, widen, and realign channels of the Port of Brisbane, in a project of up to 25 years designed to accommodate larger ships and enhance maritime safety and regional port efficiency.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Cristiano Ronaldo builds a billion-dollar mansion in Portugal with 54,000 square feet, a 3-acre plot facing the Atlantic, private spa, indoor and outdoor pools, and an estimated value of an impressive R$ 385 million.

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