The dollar rose and oil fell, what will happen to the price?
Brent crude oil traded below $80 a barrel on Monday for the first time in seven weeks. It closed at $79.80, down 1.5% from Friday’s price, reflecting weaker demand and slower-than-expected activity in China.
Although Monday’s value was the lowest since early June, the July average is above US$84, 2.4% above the price for June.
The references for gasoline prices that the Executive Branch considers to establish the Import Parity Price (PPI) of fuels increased between 6% and 7% in the last month.
During the month of July, the dollar rose by 2.5% compared to the June average and the interbank dollar rate has been above $40 for four weeks.
In the next few hours, the Executive Branch will announce the fuel prices for August based on the Ursea report, which takes these and other variables into account.
Although there is an 8% difference between the monthly peak of crude oil prices on July 4 at US$87.46 per barrel, the sharp drop in the last two weeks is not necessarily a sufficient condition for a drop in fuel prices in Uruguay. Market observers estimate that current prices will remain in August.
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