The maximum price of 95 octane gasoline at self service pumps in Israel is expected to be lowered by NIS 0.13 per liter, from NIS 6.07 to NIS 5.94 on November 1 (midnight Saturday at the end of next week).
The reason for the fall is a 10% drop in the price of oil on world markets over the past week following a US government announcement that weekly oil reserves have risen by 7.6 billion barrels to 468.6 billion barrels. This was the sharpest weekly rise since April. Earlier in the month oil prices had risen 9% following the geopolitical tensions caused by Russia's deepening involvement in Syria.
A barrel of Brent crude is trading today at $48.18 and WTI is $45.40.
Goldman Sachs senior analyst Jeff Currie has repeated last week's forecast that oil prices will remain low for a very long time and that production is surprisingly high in Saudi Arabia, Iraq, Russia, Brazil and Norway.
The price of fuel in Israel is set according to the price in the last four days of the month at Lavera in France.
Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015