R33.13<\/em><\/strong><\/mark><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\nOil prices going the wrong way<\/h2>\n\n\n\n
Economists had seen some hope for slightly lower under-recoveries earlier this week after the global oil price moved below $100 a barrel.<\/p>\n\n\n\n
The recovery was driven by progress in Saudi Arabia to restore a pipeline that bypasses the Strait of Hormuz, thereby restoring some oil flows.<\/p>\n\n\n\n
There were also positive signs that the United States and Iran would re-engage in peace talks to end the almost 7-month war.<\/p>\n\n\n\n
While talk of ending the war persists, the market remains full of mixed signals.<\/p>\n\n\n\n
There are indications of a pickup in Middle East flows, but there is also speculation that the US may ban diesel exports. <\/p>\n\n\n\n
Analysts have noted that prices are likely to remain in the $100-$110 a barrel range until there is a material change in the outlook.<\/p>\n\n\n\n
If there is a credible deal between the warring nations, prices could fall below $100 a barrel. If there is another collapse or escalation, $120 a barrel could be back in play.<\/p>\n\n\n\n
As things currently stand, markets are unsure of which is more likely. Regardless, prices are more than 70% higher this year, stoking inflationary pressures.<\/p>\n\n\n\n
This has played into central banks’ interest rate decisions over the past week, with the US Fed hiking rates by 25 basis points and the South African Reserve Bank following suit on Wednesday (23 September).<\/p>\n\n\n\n
In turn, the rand has suffered, climbing to R16.30 to the dollar as markets digest the move.<\/p>\n\n\n\n
While the rand is trading weaker\u2014having moved below R16\/$ earlier in the month\u2014it remains in a relatively resilient position and is contributing positively to recoveries.<\/p>\n\n\n\n
However, where the unit was offsetting the under-recoveries by about 15 cents per litre a few weeks ago, it is now only contributing about 6 cents per litre.<\/p>\n","protected":false},"excerpt":{"rendered":"
The under-recovery for petrol prices in South Africa has hit the R3-per-litre mark, setting motorists up for almost R30-per-litre pump prices in October.<\/p>\n","protected":false},"author":10,"featured_media":876606,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2103434350113042813","_sma_facebook_post_id":"191437357620492_2216109385876127","_sma_instagram_post_id":"18631898056013071","_sma_x_attempts":1,"footnotes":""},"categories":[9874],"tags":[8995,19909,18450,2171],"class_list":["post-876995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-cef","tag-diesel-price","tag-oil-price","tag-petrol-price"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/876995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=876995"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/876995\/revisions"}],"predecessor-version":[{"id":877000,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/876995\/revisions\/877000"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/876606"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=876995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=876995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=876995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}