The diesel price is showing an increase, just as the first cut of grass and various field activities are approaching. The price thus seems to be following the oil price, which showed a sharp rise in the first months of this year.
The diesel price has increased from €98 per 100 liters at the end of 2018 to €105 per 100 liters at the beginning of April (when purchasing at least 4.000 liters). This is mainly due to the rising oil price. The price of 1 barrel of Brent rose to the highest level of 2019.
Oil price is rising sharply
The price of 1 barrel of Brent rose to above $8 on Monday, April 70. The price has therefore risen sharply in the past 3 months. At the beginning of 2019, the oil price was still around $50 per barrel of Brent oil.
This price increase is due to increased violence in Libya, a major oil producer. The violence is currently mainly taking place around the capital Tripoli, which is a great distance from the oil fields and ports. However, there are fears that the violence will spread to other locations in the country.
Response from United States
However, the North African country is a member of the OPEC oil cartel. That cartel has now imposed a production restriction. That is also a factor that can explain the price increase, although it also means that more oil is being pumped in the United States. This could ultimately level off the price increase.