Orion Farming Group Fuel Update 20/08/25
- Orion Farming Group
- Aug 20
- 2 min read
Average prices overall have risen slightly over the last week as indicated in the pricing graph. Deliveries remain between 2 – 5 working days, dependant on the Supplier & area they cover.
Reminder – Monday 25th is a Bank Holiday, Suppliers very unlikely to be delivering.
Your Farm Fuel Briefing: August 20, 2025
1. The Headline: The Price Slide Has Stopped
The recent, steady drop in oil prices has stopped. After hitting the mid-$60s, Brent Crude has found a floor and firmed up to around $66 a barrel. This means the significant post-harvest discounts you’ve seen on red diesel are now being tested.
2. What’s Driving the Change?
The market's focus has shifted from weak demand back to supply risks.
Why prices were falling: Weak economic data from China and rising US oil stockpiles pointed to a global slowdown.
What changed this week: Renewed supply risks, mainly due to uncertainty over peace talks in Ukraine, have been enough to stop the price from falling further.
3. What This Means for Your Farm
Turning Point for Costs: This firming price suggests the period of rapidly falling red diesel costs is likely over for now.
The Takeaway: While global demand is soft, supply risks and a watchful OPEC+ are preventing a total price collapse. We are likely at or near the bottom of the recent price range.
4. The Week Ahead
Expect choppy trading as the market weighs weak demand against tight supply. The likely range for the coming week is $65 to $69 a barrel. Today's crucial U.S. inventory report will give the next clear signal on demand.
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.
