Experts: effect of oil boycott Russia may be better than expected for the Netherlands
Experts think that the last that Dutch consumers get from the European plan to stop using Russian oil may not be too bad. Market expert Paul van Selms of consumer collective UnitedConsumers and ING economist Rico Luman think that the oil price is already higher because a boycott of oil from Russia is being taken into account worldwide. If the boycott is finally there, the price effect may not be too bad.
Both Van Selms and Luman argue that the development of, for example, the price of petrol depends on many things. The dollar exchange rate also has a certain effect on the same price and the position of the oil cartel OPEC is important. Should they decide to pump up more oil, the supply would increase and thus the price would fall. ‘But if the supply is increased, as is the case with this plan by Brussels, it will never have a lowering effect on prices’, says Van Selms. ‘It is never a nice choice if a quantity of oil disappears.’
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He receives authorization from ING economist Luman. He thinks that higher prices will only continue if the European Commission’s proposal is approved. The Commission is aiming for an end to imports of crude oil from Russia within six months. ‘So the pressure remains on the boiler. We have to take higher oil prices into account for longer.’
Diesel
Luman expects that the consequences for diesel prices will be greater than those for petrol, because Europe is more dependent on Russia for diesel. This fuel is mainly used by transport companies. According to Luman, carriers often have a clause in contracts, resulting in higher costs for the client. ‘And then that ends up with the consumer via Albert Heijn, for example.’
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But in Luman, the impact of higher transport costs is most noticeable on low-value products such as cheap clothing, toys and household goods, where a large part of the costs is spent on transport.
no shortage
The economist is not afraid of a shortage of oil due to a Russian boycott. “There is not yet time to make a switch.” seen he looked with name to the Middle East.
Oil prices rose on Wednesday after the European Commission’s proposal was announced. A barrel of American oil 3.3 percent more, Brent oil became 3.1 percent more expensive.