Brent Crude started August at $100/bbl, hitting a low of $92/bbl on the 16th of August as prolonged recession concerns weighed on the energy demand outlook, before reversing some losses and ending the month at $96/bbl.

GBP traded at $1.23 against USD at the beginning of August and continued a downward trajectory for the rest of the month, closing on $1.16 and reaching its lowest level since March 2020, as soaring inflation threatened the pound’s purchasing power and weakened the British economy. Based on current wholesale diesel prices, a seven-cent drop in GBP equates to a c. 4ppl increase in the price of UK diesel.

Iran resumed talks with leaders of the US, UK, France and Germany throughout August to revive the 2015 nuclear deal, which could see a boost of 1-2 million barrels of oil per day from OPEC+, however the new deal is yet to be agreed.