Oil, Rand see-saw continues – AA
Ongoing volatility in international oil prices has been matched by swings in the Rand / US dollar exchange rate, making fuel price predictions as tricky as ever. This is according to the Automobile Association (AA) which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
“The Rand started the month relatively strong against the dollar, but has weakened slightly,” the AA said.
“Likewise, international petroleum prices started the month soft, sagged further, and have made something of a comeback in the past few days.”
However, the consumer is still winning at this stage, with the current data predicting a drop of 24 cents a litre for petrol, 20 cents for diesel, and 21 cents for illuminating paraffin.
“We wouldn’t rely on these figures though, since a lot could change by month end,” the AA commented.
“Internationally, OPEC seems set to stay the course with its production cuts, and on the local front, ratings agency Moody’s is likely to make an announcement on its view of South African sovereign debt, which is anticipated to be negative,” the Association commented.
“These factors could work against the gains in the fuel price seen in the first fortnight of May,” the AA concluded.