Suppliers are still busy, lead times between 3 & 10 working days, please bear in mind when placing orders. Average prices have dropped slightly again this week.
Fuel price outlook
The Brent Crude Oil Futures price remains near the bottom of the price range seen just prior to the start of the Ukraine War three years ago.
In the context of this market being particularly volatile, recent price movements have been fairly benign and, with a lag of a couple of weeks for price movements to feed through to UK farm fuel prices, we can see a similar flat price picture for Orion farm prices.
The markets are not currently factoring in any great change to the futures price; if we go back to before the Ukraine War the futures markets were factoring in price rises 3 months before the war began and the price peaked 4 months after the war started.
Whilst the onset of spring leads to increased demand for red diesel for the Agriculture and Construction sectors, typically the potential for localised price increases is outweighed by the factors affecting global oil markets (Source: Gemini).
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.
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