Orion Farming Group Fuel Update 18/06/25
- Orion Farming Group
- Jun 18
- 2 min read
Average Prices have risen sharply as you will see from the graph below over the last week & particularly the last two days due to the Middle East issues. Deliveries remain between 2 – 7 working days, dependant on the Supplier & area they cover.
Fuel price outlook
Brent Crude futures are currently trading around $76-$77 per barrel. The market has seen a significant spike this week, primarily driven by escalating geopolitical tensions in the Middle East. Recent Israeli airstrikes on Iranian facilities, and subsequent retaliatory actions, have stoked fears of a wider regional conflict that could disrupt supply through the critical Strait of Hormuz, a key transit route for approximately 25% of the world's oil.
This surge in the "geopolitical risk premium" is the main cause of the recent volatility, overshadowing other market fundamentals.
Looking ahead to next week, market estimates are highly cautious. Analysts expect continued volatility, with prices likely to remain elevated as long as tensions persist. The key driver will be any further military action or rhetoric from Israel or Iran. While global oil inventories have been building, a direct impact on supply routes would send prices sharply higher. Conversely, any signs of de-escalation could see the risk premium evaporate, causing prices to fall back towards the low $70s. For now, the market remains on a knife-edge, reacting instantly to headlines from the region.
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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