Crude oil prices in the global market declined by about 3.69% compared to the previous pricing window, demonstrating the sector’s recovery from the geopolitical tensions in Q2 that spiked prices considerably around the period. Pump prices are expected to edge slightly in the coming window (1st to 15th September) due to the depreciation of the cedi despite the marginal decline in prices at the international market.
That’s according to the Chamber of Bulk Oil Distribution Companies. Similarly, refined petroleum products (petrol, diesel, LPG, and ATK) fell considerably within the same period. Petrol, diesel, LPG, and ATK declined by 0.45%, 3.74%, 1.73%, and 2.06% respectively. Crude and petroleum product prices rose sharply in June by about 8% following Israel’s and US attacks on Iran’s nuclear sites and the resultant retaliatory attacks from Iran.
Globally, crude oil prices are expected to decline further as the eight (8) OPEC+ nations that voluntarily cut down output by 2.2 million bpd in 2023 to avert stumbling prices have now agreed to start a gradual and flexible return of the 2.2 million bpd voluntary adjustments starting in the middle of the year. This coupled with the slower-than-expected global economic growth, tariff impositions by the US, and increasing crude production by some non-OPEC nations will increase global supply and most likely further weaken prices.
Moreover, the growing adoption of Electronic Vehicles (EVs) in recent times continue to diminish the expected growth in the demand for crude and petroleum products. According to the International Energy Administration (IEA), the rapid growth in EV sales over the past 5 years has had a significant impact on the global car fleet, growing to almost 58 million at the end of 2024. About 17 million EVs were sold in 2024, rising in China by about 30%. It is expected that crude and petroleum prices on the global market will decline in the coming months. Find attached the latest Crude Oil and Refined Products Market Review and Outlook for the first half of September.