Fuel prices showed mixed behavior at the beginning of this week: gasoline became cheaper, while diesel recorded a (very) slight increase, according to the updated average prices from the Directorate-General for Energy and Geology (DGEG).
In summary, simple gasoline 95 went from 1.689 euros per liter to 1.675 euros per liter between Friday and Monday, marking a decrease of 1.4 cents.
Meanwhile, simple diesel rose from 1.570 euros per liter to 1.573 euros per liter during the same period, representing an increase of less than half a cent.
What did the forecasts indicate?
According to forecasts released by the Automobile Club of Portugal (ACP), gasoline was expected to become two cents cheaper, while diesel prices were anticipated to remain stable.
Ultimately, the price of simple gasoline 95 decreased less than anticipated.
It is noteworthy that these calculations are based on daily average prices published by DGEG, which are determined based on prices reported by fuel stations, weighted by the quantities sold in the last known period and incorporating discounts offered at service stations, such as fleet cards and others. This analysis considers data from 2,923 active fuel stations.
How is the oil market?
The Brent crude oil price for September delivery ended Monday on the London futures market with a 1.87% increase, closing at 69.58 dollars.
The North Sea crude, a benchmark in Europe, finished trading on the Intercontinental Exchange at 1.28 dollars above the 68.30 dollars it closed at during the previous session.
Brent began the week fluctuating near the 70-dollar-per-barrel mark, as the market seemed to disregard the decision by the Organization of the Petroleum Exporting Countries (OPEC+), which agreed on Saturday to increase its crude supply by 548,000 barrels per day (bpd) starting August 1, a volume far exceeding the 137,000 bpd of the previous three months and market expectations.
According to market analyst Forex Razan Hilal, despite downward pressure, several bullish factors are “sustaining” crude prices, as investors see OPEC+’s confidence in the elimination of production cuts as “a more optimistic outlook on supply and demand.”
Hilal also highlighted the weakness of the US dollar, reducing oil prices for buyers in other currencies, expectations of interest rate cuts by the US Federal Reserve (Fed), and potential US trade deals with global partners as drivers of demand sentiment.
Regarding this last point, US President Donald Trump announced the extension of the deadline for concluding tariff negotiations, initially scheduled to end Wednesday, to August 1, as agreements with some key partners, such as the European Union, are yet to be finalized.
