Johannesburg - Until Saturday’s drone attacks on Saudi Arabia’s Abqaiq oil refinery, the rand and oil price stars seemed to be aligning towards a small petrol price decrease of around 11 cents a litre, while the diesel price seemed set for a very slight increase of less than nine cents.
However, the drone strikes have caused international oil prices to surge, initially by 20 percent, the highest spike in over 30 years. Although oil prices have since recovered to $66.36 at the time of writing, this is still high enough to lead to a substantial fuel price increase at the end of the month, considering that the most recent daily price was 50 cents in the red, although the positive monthly average so far should cancel most of that out, at least for this month.
This set of events makes it impossible to accurately predict September’s fuel price movements, although with world markets considerably rattled, there is a lot of risk in the air.
Not only did the strikes disrupt five percent of the world’s oil production, something that could take weeks or more to fix, but the fear of further strikes could keep the oil market jittery for quite some time.
In fact, following the strikes some analysts said prices could rise towards the $100 mark if Middle East tensions reignited.