Orion Farming Group Fuel Update 27/08/25
- Ann Lewis
- Aug 27
- 2 min read
Average prices overall have remained level over the week, just a slight increase on Kerosene 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: 27th August 2025
A quick-fire update on the key questions impacting your fuel costs.
Q1: What has happened to the oil price since last week?
As predicted last week, the oil market has remained stuck in its range. The price has barely moved, shifting from around $66 to today's price of $67 a barrel. This confirms that the market floor we saw forming last week has held firm, but it also shows there is currently no momentum for a price rally. The market is in a perfect stalemate.
Q2: Why is the price stuck in this range?
We are witnessing a market tug-of-war between two opposing stories, with neither side strong enough to win.
Propping Prices Up (The Bull Case): The U.S. inventory report released last Wednesday showed a larger-than-expected drop in oil stockpiles. This was a powerful signal that fuel consumption in the US is healthier than feared, and it has been the primary reason prices have not fallen back.
Keeping a Lid on Prices (The Bear Case): Persistent concerns about a major economic slowdown in China, coupled with mixed business activity data from Europe, are weighing heavily on the market. This weak global outlook is preventing any rally from starting.
Q3: What does this mean for my red diesel and kerosene costs?
This stability is good news for planning both your machinery and heating fuel needs. For red diesel, costs should be holding steady, providing predictability as you budget for autumn drilling. For kerosene, this lack of volatility offers a stable backdrop for ordering your heating oil before the winter demand really kicks in. The key takeaway is that while the dramatic price falls are over, a price spike hasn't materialized. This period of balance provides a good window to assess your requirements for both fuels.
Q4: What should I watch for next?
The market is now waiting for a catalyst to break this deadlock. The most likely scenario for the coming week is for Brent Crude to remain in this tight range of $66 to $70 a barrel until a significant new piece of economic news is released. Today's weekly U.S. inventory report will be watched very closely; a second large drop in stockpiles might give prices the push they need to move higher.
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.
