Orion Farming Group Fuel Update 30/07/25
- Orion Farming Group
- Jul 30
- 2 min read
Average prices overall have remained stable through the last week as indicated in the pricing graph, just a very small increase in Gas Oil. Deliveries remain between 2 – 5 working days, dependant on the Supplier & area they cover.
Ford Fuels have advised that they now stock HVO Red & HVO White at their Membury depot, full details are on their website. Currently they supply Orion with a weekly price on a Friday.
Your Farm Fuel: A Timely Harvest Reprieve
The key story for oil over the past fortnight has been a failed rally, as simmering supply risks were ultimately smothered by a fresh wave of economic anxiety. Brent Crude went on a sharp run, climbing from below $70 to touch nearly $77 a barrel last week. However, that momentum has completely reversed, with prices tumbling back to the current $72.51 (30/07/25).
The initial driver of the price climb was a clear escalation of tensions in the Red Sea. What had been a background risk became a primary market mover, as further attacks forced more oil tankers to divert around Africa. This added a solid and tangible "risk premium" to the price, which was further supported by the OPEC+ group holding firm on their production cuts to keep the market tight.
However, this upward momentum hit a wall at the start of this week. The reversal was triggered by a disappointing manufacturing report from China, which fell short of expectations and re-ignited fears of a slowdown in the world's most important oil-importing economy. These concerns were then compounded by the weekly U.S. oil inventory data, which showed a surprise increase in crude stockpiles. This suggested that fuel demand was weaker than the market had priced in, puncturing the bullish narrative and sending prices lower.
For your farm, this means the recent price relief is welcome, but the underlying volatility makes planning for your harvest/post-harvest fuel needs incredibly difficult. The key takeaway is that while supply risks can create sharp price spikes, the fragile state of the global economy is acting as a powerful brake, capping how high prices can go. The red diesel price you are quoted today should be noticeably lower than at the peak last week. The crucial EIA stocks report is due out later today (Wednesday), and its result will set the immediate tone, revealing whether this dip is the start of a new trend or just a temporary blip.
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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