Oil Prices Tumble Towards $70 as Fuel Costs Drop Sharply
Brent crude reaches its lowest point since February, with significant reductions in diesel and petrol prices offering relief to consumers.
Oil prices are falling back towards $70 a barrel, driven by a significant reduction in fuel costs, including a record decrease in diesel prices. Brent crude fell to as low as $70.14, its lowest point since late February, before the outbreak of war in the Middle East previously pushed prices as high as $126.
The increase in the number of tankers navigating the Strait of Hormuz and a tentative peace agreement between the U.S. and Iran have contributed to improved oil supply.
These developments have translated into lower fuel prices at the pump. According to the RAC, the average price of diesel dropped by nearly 17 pence per liter in June, reaching 167.14 pence. This marks the largest monthly decrease since records began in 2000. The price of petrol also decreased, falling by nearly 8 pence per liter to 151.40 pence.
Consequently, filling a tank with diesel is now more than £9 cheaper than at the beginning of June. However, fuel prices remain higher than they were before the conflict. RAC head of policy Simon Williams noted that petrol is expected to fall below 150 pence per liter soon, and diesel could drop below 160 pence. He added that a further decline in oil prices would be necessary for a return to pre-conflict price levels.