Oil prices take a nosedive but trucking operators should not expect fuel relief anytime soon
Trucking operators are unlikely to see any reprieve at the pump despite the price of oil plummeting last night.
The price of oil fell from $US105.19 on September 9 to just over $US90 per barrel on Tuesday, but has risen to $US93.44 a barrel.
The overnight downturn saw oil hit its lowest in seven months to $US91.15 a barrel, slashing more than three dollars from the price.
However, chief forecaster for ComSec Craig James says the weak Australian dollar means diesel prices are unlikely to shift.
This is in the wake of an intensely uncertain market the previous months which James calls “a bit of a moving feast”.
He says over-supply is a concern as well, with the the global financial down-turn leaving industry specialists anxious that energy demand will lessen as the economy continues to struggle.
But some analysts view the tumbling pricesas the key to stimulating the global economy, which has suffered as a result of the US sub-prime mortgage meltdown.
International analyst for ComSec David Moore says oil prices were expected to tighten, with a decline through 2009.
The Organisation of the Petroleum Exporting Countries (OPEC) over-produced to help ease oil prices, but Moore says OPEC will slash its oil production by 500,000 barrels a day.
“It was widely known that they were over producing to stabilise the market and if you believe the media releases they have sent out, they will be returning to compliance,” Moore says.
“The extent to which they move towards compliance is unknown.”