The supply glut that’s led to the recent low fuel prices is, according to some, coming to an end, but RAC fuel spokesman Simon Williams does not feel this is automatically going to mean pricier petrol and diesel.
Indeed, “the latest news is that U.S. crude supplies have actually increased again rather than shrunk so there is now talk that the market has risen too far, too quickly.
“This could well take the heat out of the oil price.”
Because of this, Williams believes rather than rocketing, fuel prices are more likely to be kept in check for Britain’s 30 million car drivers.
There are politics at play too, he adds: some fear that the oil price is set to go above $50 a barrel for the first time since October 2015, but Williams says that if this was the case, the U.S. would likely step up oil production from fracking.
“OPEC does not want to see this happening so there is likely to be a renewed focus on increasing production to deflate the oil price.”
Last week, Natwest warned that motoring costs are set to soar due to a combination of rising repair, maintenance and insurance costs – although it did add that it’s low fuel prices that have led to today’s motoring costs being at their lowest level since 2009.