Shutterstock / Patryk Kosmider
The price of petrol and diesel at the pumps is expected to fall after the cost of a barrel of crude oil dropped to its lowest level this year, the Daily Telegraph reports.
The fall in prices is due to a peak in supply from Saudi Arabia, which has seen supply outstrip demand and stockpiles grow.
The International Energy Agency – an oil industry think-tank – suggests that the world will consume less oil this year than had been originally forecast, down to just one million barrels per day. However with Saudi Arabian supplies running at their highest levels since last year (at some 300,000 barrels per day above the forecast output) and Libyan crude oil coming back on the market, prices have nowhere to go but down.
The average price of a litre of petrol has remained relatively stable all year at 131.3p, while the cost of diesel has dropped nearly 3p to 135.6p per litre.
The increase in supply also shores up the global economy, making it more robust against unreliable supplies, should the Ukrainian crisis escalate.
The news is further relief for motorists, who have already seen pump prices drop this year as the result of a supermarket price war. This is likely to continue further as long as the price of crude oil remains low.