Middle East Tensions Could Impact Fuel Prices
As geopolitical tensions grow, oil spikes amid fears Israel may strike Iranian refining infrastructure
Oil prices log biggest weekly rise in almost 2 years as Middle East tensions mount
Brent crude up almost 10% amid speculation of Israeli or Iranian strikes on energy infrastructure
RAC fuel spokesperson Simon Williams said: “Serious global events of this nature often cause a spike in oil prices which is never good for drivers in the UK, especially if it is sustained. Fortunately, since the start of May the price of petrol has fallen 15.5p from 150.3p a litre, and diesel from 18.5p from 158p. This was due to oil coming down from $90 a barrel in early July to $72 at the end of September.
“As pump prices have still been falling due to lower wholesale costs in recent weeks, there’s the potential for this to cushion the negative effective of a rising oil price to some degree. We very much hope the current situation won’t bring an end to the slightly better times at the pumps drivers have been benefitting from.”
Iran is a member of the Organization of the Petroleum Exporting Countries with production of around 3.2m barrels per day or 3% of global output.
“This is going to really test the mettle of the market because up until now the risk to supply has been downplayed, as there has been no disruption, so this could be a game changer,” said Phil Flynn, senior analyst for Price Futures Group.
