Orion Farming Group Fuel Update 03/09/25
- Orion Farming Group
- Sep 3
- 2 min read
Average prices overall have been on the rise slightly this week, as indicated in the pricing graph. Deliveries remain between 2 – 5 working days, dependant on the Supplier & area they cover
Your Farm Fuel Q&A: 3rd September 2025
A quick-fire update on the key questions impacting your fuel costs.
Q1: What has happened to the oil price since last week?
The market stalemate continues, but it has been a volatile week inside the range we predicted. Prices attempted to break higher, rallying to a peak of $69 yesterday. However, the rally failed and prices have since fallen back to around $67.85 today. This shows that the market tried to push costs up but couldn't sustain it. The forces keeping a lid on prices remain very strong.
Q2: Why is the price stuck in this range?
It's a classic battle between a strong United States and a weakening global picture.
The Push Higher (The Rally): The move towards $69 was driven almost entirely by more good news from the U.S. Last Wednesday's inventory report showed another surprisingly large drop in stockpiles, confirming that American fuel demand remains robust.
The Pull Lower (The Failed Rally): That optimism was crushed by fresh, weak economic data from China at the start of this week. Disappointing factory output figures reminded traders that while the U.S. is holding up, the global demand outlook is fragile, and this is preventing a sustained price rise.
Q3: What does this failed rally mean for my red diesel and kerosene costs?
This is actually good news for your cost planning. It demonstrates that even when the market gets a bit of bullish news, there isn't enough momentum for a major price spike right now. This continued stability in the high-$60s provides a predictable window for your autumn fuel purchasing. While the big discounts of early August are gone, the immediate threat of a runaway price rally back towards $80 seems low.
Q4: What's the outlook for next week?
The market seems firmly trapped. Expect prices to remain volatile but contained within a $67 to $70 a barrel range. The deadlock will only be broken by a major new piece of news. This could be a surprise from the next U.S. inventory report (due later today) or, more likely, a significant policy announcement from China aimed at boosting its economy.
Fuel price outlook section provided by Investing.com and Demand Economics.
Please note that any opinions expressed in this update are sources from market information / analysis and do not represent views of Orion Farming Group. Orion Farming Group accepts no responsibility for any Member decisions made on the basis of information provided in the weekly fuel update.
Applications and Data Analytics for Orion developed by Demand Economics Ltd.
