Hi All,

Another rise in fuel this week creating an all time high for the scheduled price! Factors influencing current increases are;

• Reduced supply due to attacks on oil facilities in Nigeria - almost 500k/bbls/day locked in.
• Tension over nuclear programme in Iran - Iran is the 3rd largest supplier of crude oil. Worries about future supply.
• Refinery bottlenecks - this was the main problem for the rises last year. Not enough refineries to convert oil into useable products. New refineries are being built but it takes 3 years and 2-5 billion dollars. Just under 20% of the US's refineries are still out of operation since last year hurricanes.
• Seasonal factors - the US is buying up massive quantities of unleaded in preparation for the US driving season which will start in May.
• Hedge Funds - Main reason for such an irregular market - hedge funds are investing massive amounts of capital buying and selling products. They can get a greater return than on the stock markets. This leads to large daily swings as funds buy and release large quantities of products.
  

Remember - The fixed price ensures that wherever you use the card, there is a cap on the maximum amount that you can be charged. The only time it’s different is if the pump price is lower and you are automatically charged the cheaper of the two. So if you are already a Statoil customer, you can't lose! If not, join the motorcard and help us bring the cost of fuel down today!