Orion Farming Group Fuel Update 13/08/25
- Orion Farming Group
- Aug 13
- 2 min read
Average prices overall have remained stable through the last week as indicated in the pricing graph. Deliveries remain between 2 – 5 working days, dependant on the Supplier & area they cover.
Your Farm Fuel: A Welcome Harvest Discount
The key story for oil over the last two weeks has been the triumph of economic fear over supply risk. The dip we saw in late July has turned into a sustained slide, with Brent Crude falling from over $72 to trade at a much more comfortable $68 a barrel today. This continued drop is great news as you get through the most fuel-intensive part of the season.
This price decline has been almost entirely driven by a drumbeat of worrying economic data. Weak trade figures released from China confirmed a significant slowdown in its economy, while sluggish services sector data from both the U.S. and Europe have dampened the fuel demand outlook across the Western hemisphere. Essentially, traders are now betting that a cooler global economy will require less fuel.
This bleak demand picture was cemented by the last two weeks of U.S. inventory reports, which consistently showed more oil in storage than analysts had expected, confirming that consumption is lagging. At the same time, the geopolitical "risk premium" from the Red Sea has continued to fade from the market as no major new incidents have occurred to spook traders, allowing the weak fundamentals to take centre stage.
For your farm, this is unequivocally good news. The cost of your harvest and post-harvest cultivation fuel continues to fall. The key takeaway is that for now, concerns about a global economic slowdown are firmly in the driver's seat, and this is pushing fuel prices lower. However, we may be approaching a floor. At these lower levels, talk from the OPEC+ nations about intervening to defend prices is getting louder. They will not want to see prices fall much further.
They are not scheduled to meet formally, but watch for any statements from key oil ministers over the coming days, as this will give the best clue as to whether they will step in to stop prices from falling further.
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.
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