The fuel category manager at the Circle K Latvia petrol retailer has told the LETA News Agency that depreciation in the value of the US dollar against the euro may lead to a cut in prices.
Gatis Titovs says that the dollar’s value has been dropping since the beginning of the year to the lowest level in four years. “As oil and fuel are traded in dollars all around the world, the depreciation of the dollar will help to cut prices in the Baltic region, as well,” he argues.
Titovs adds that the policies of US President Donald Trump have started to have an effect on Baltic consumers, with the pump price of diesel fuel declining by around 10 cents per litre since the beginning of April.
Titovs explains that the dollar is depreciating because of the Trump Administration’s tariff programme, which has led many investors to move their investments from the US to Europe. “Trump’s public criticism of the chairman of the Federal Reserve and his attempts to get him fired have also undermined confidence in US institutions and in the dollar as a stable currency,” he adds.
Titovs further notes trade disputes between the United States and China which have cut demand for prices – something that may be a sign of slowing global economic growth. Some economic experts are already predicting that the US will fall into recession. The International Monetary Fund has cut its forecast of US economic growth in 2025 to just 1.8%, mostly because of the tariffs which Trump imposed.
The war in Ukraine is also continuing to affect the price of oil, the company spokesman says: “If Russia succeeds in preventing a peace deal with Ukraine and the US pulls out of the talks, then there is the risk that the war will be prolonged. This, in turn, means that oil prices could remain high or even rise in the face of attacks on Russia’s oil infrastructure.”
Gatis Titovs insists, however, that the Organisation of Petroleum Exporting Countries (OPEC) is planning to increase oil output by 411,000 barrels per day in May. If the United States and Iran reach agreement in their nuclear talks, that could ease sanctions on Iranian oil exports, and that would boost oil supplies and help to keep prices at current levels.
Source: BNS
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