uel prices have been fluctuating due to global economic shifts, geopolitical tensions, and seasonal demand changes, but a downward trend is emerging.
Key market drivers:
Economic shocks and oil volatility: A Chinese AI breakthrough briefly destabilised US markets, affecting oil prices. Meanwhile, Brent crude has dropped from $85 to $72.70 per barrel due to shifting geopolitical conditions.
Cold weather and diesel demand: The Northern Hemisphere winter boosted diesel demand, but as temperatures moderate, fuel prices are easing
Geopolitical uncertainty: Potential US-Russia negotiations, a UN resolution aiming to end the Ukraine war, and speculation around a Ukraine-US deal on Rare Earth minerals are creating market volatility. If Russian crude supply normalises, fuel prices could drop further.
NZ-specific factors: The cost of transporting fuel to New Zealand has stabilised, and the NZ$ is slowly recovering, helping to ease import costs.
Overall, while short-term volatility remains, longer-term trends suggest lower fuel costs as geopolitical tensions ease and supply outpaces demand.
