Worldwide oil production has been at an all time high. With the suspension of Iranian sanctions adding even more to supplies, and the global dowturn effecting demand, barrel prices have conversely fallen to new lows. This translates directly to prices at the pump and so in the UK we have seen prices drop down in to the region of the £1.00 per litre mark around a year ago.
However, with Brexit came a drop in the value of the pound, and that knocked on to pump prices. Now the oil producing countries - both OPEC and Non OPEC - have agreed to suspend some production. The announcement of this supply side control instantly sent a barrel of crude to $56 per barrel, up from lows of $38
The combination of these factors - a weak pound, and a cut in production; could create a perfect storm for UK Motorists, pushing up prices as we move in to the new year.
Do you have any concerns about future price increases?
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