Oil & Fuel update – 29 August

A look back

Diesel prices are at their highest since the start of the year, the latest data collected from RAC puts diesel at an average of 153.19p per litre – the highest since May.

AA spokesman on road fuel prices, Luke Bosdet attributed the rise in diesel prices as a direct result of ‘the oil price hike that was brought on by production cuts’ from OPEC seen last month. 

On Friday, crude posted a second week of losses. The focus remains on China’s actions to boost its lagging economy and a potential threat posed by Tropical Storm Idalia to crude and product output in the US.

China took steps to bolster its economy, halving stamp duty on stock trading in its latest attempt to boost market sentiment. 

There is concern Storm Idalia could hit the eastern side of U.S. Gulf Coast crude production, providing some short term support for oil prices.

On Monday, Brent crude settled at $84.42 a barrel, after touching a session high of over $85 earlier in the day.

A Look Ahead

Investors now look ahead to key US jobs and inflation data this week, as well as manufacturing PMI figures for both the US and China

Saudi Arabia is expected to extend a voluntary oil output cut of 1 million barrels a day into October, as the kingdom seeks to further support the market, with an objective of $90.

Oil prices have remained above $80 a barrel with support from falling oil inventories and supply cuts from the OPEC+ group of oil producers.

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