Red diesel prices 'remains stable despite crude oil hike'

27/05/2009

Strengthening of the sterling against the dollar is the main reason for the limited impact of higher crude oil prices, it has been suggested.

The pound has risen from about $1.48 to nearly $1.60 this week, Nick Adamson from Ackerman & Niece told Farmers Weekly Interactive.

Red diesel prices have remained relatively stable despite strong demand as the silage season gets fully underway.

Steady red diesel prices also come amid increases in the price of crude oil, he added.

"[Crude oil] prices seem to be tracking the stock market and are almost up to a level that the Organisation of the Petroleum Exporting Countries will be happy with, so I think things should stay fairly stable for the foreseeable future," Mr Adamson told the resource.

However, there is speculation that oil prices could rise, with concerns already raised about supplies for the coming winter.

The Financial Times has warned that although oil prices have recently risen, it is a "false indication" of market health.