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Inside Oil

Quickly fill the tank before the harvest starts?

June 25, 2019 - Anne Jan Doorn

The rise in the diesel price has reached its peak in mid-May and since then the price has fallen sharply. However, the bottom of this decline appears to be in sight.

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While the diesel price early April was still €1,05 per 100 liters (excluding VAT), this has fallen below €1 per 100 liters several times since last month. However, the diesel price is now rising again, currently amounting to €1,02 per 100 liters (with LTO member benefit).

The price drop was caused by a drop in the oil price (Brent). This price dropped from $74 per 100 liters in mid-April to $60 per 100 liters on June 12. The price is now rising again and is listed at $65 per 100 liters. The price increase is mainly due to the fear that the conflict between Iran and the United States will escalate.

Rising oil price
Analysts expect that the oil price will probably rise further. Military intervention in the Strait of Hormuz, the main transit route for oil from the Middle East, would hinder supplies to companies. That causes a rising price.

In addition, the OPEC oil cartel will meet in early July with countries that are not members of the cartel (such as Russia) to make agreements about a possible extension of production restrictions.

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