February 27, 2025

Geopolitical events cause major uncertainty

 

Source: Trading economics, 26th of February 26, 2025. Brent Crude oil

 

Since our last update on the Brent Crude oil price, the price has fallen from 74,93 dollars per barrel to 72,82 dollars per barrel.

 

The geopolitical and economic factors continue to affect the price of Brent crude oil. In the last blog report, we mentioned a meeting between US president Donald Trump and Russian president Vladimir Putin. In relation to this meeting there has been speculation about a potential peace deal between Ukraine and Russia being made. This has introduced further uncertainty about the future oil supply.

 

There are also economic factors that influence the price. Consumer confidence has dropped in the US, and also in Germany. This incentivized international concerns about an economic slowdown, which obviously affects the demand for crude oil.

Source: Trading economics, 27th of February 26, 2025. Gasoline.

 

Not surprisingly, the price of Gasoline has also fallen from 2,07 per gallon to 1,94 per gallon. Gasoline is most likely influenced by the same factors as Brent crude oil. The last two weeks fluctuations seem to be reasonably similar between the Brent crude oil and Gasoline. Therefore, it is unlikely that an event has had an isolated effect at the gasoline market.

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