IoC update on fuel prices by Mike Baker, Clydesdale Bank

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Since mid-2014, the industry benchmark for wholesale diesel prices, ULSD10, has fallen by nearly 70% from around 50p per litre to a low of barely 15p per litre in January this year. The fall was so significant that there was even speculation that the Chancellor may look to cash in by increasing fuel duty to above the current rate of 57.95p per litre. Fortunately for motorists this never eventuated, however prices have since rebounded significantly in 2016 by nearly 10p per litre in less than four months - just in time for the busy summer driving season.

 

 

Reuters reported at the end of April that analysts are growing increasingly confident that a near-two-year rout in oil has ended. Analysts’ aggregate forecasts were raised for the second consecutive month after 10 months of forecasted oil price reductions, as healthier demand and a drop in U.S. shale output were deemed likely to balance the market by 2017.

2016 news may clydesdale fuel prices 2

Mike Baker from the Treasury Solutions team at Clydesdale Bank has reported of a number of new small commercial customers with consumption of 50,000+ litres per month using Average Rate Diesel Swaps for the first time in order to help them budget with certainty and protect their businesses from fuel price spikes in 2016 and beyond. For further information see the Clydesdale Bank website or email This email address is being protected from spambots. You need JavaScript enabled to view it. for an obligation-free chat to learn more about how a fuel swap works and whether it might be suitable for your business.

 

Last modified on Monday, 16 May 2016 16:50
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