We share our insights into the factors impacting fuel prices, including predictions for fuel costs as we head into next week.

What determines fuel prices?

Wholesale fuel prices determine the price of petrol and diesel at the pump. They are influenced by a range of factors, including crude oil supply, demand, and pricing, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government.

Supply, demand and other factors:

• While geopolitical tensions can cause market uncertainty – especially in oil-producing regions such as the Middle East and Russia – global economic performance can slow demand and impact prices. 
• Oil is traded in U.S. dollars, so dollar fluctuations impact oil prices. A stronger dollar and fluctuations in exchange rates make oil more expensive in other countries, potentially lowering demand. 
• Seasonal factors like winter heating demand in the Northern Hemisphere can also increase oil consumption and pricing. 

Please speak to our team for more information on fuel card pricing, including advice on how to save time and money on fuel management. 

The information provided in this post is for information only. It does not constitute financial advice. Pricing predictions are speculative and should not be relied upon for forecasting.

We share our insights into the factors impacting fuel prices, including predictions for fuel costs as we head into next week.

What determines fuel prices?

Wholesale fuel prices determine the price of petrol and diesel at the pump. They are influenced by a range of factors, including crude oil supply, demand, and pricing, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government.

Supply, demand and other factors:

• While geopolitical tensions can cause market uncertainty – especially in oil-producing regions such as the Middle East and Russia – global economic performance can slow demand and impact prices. 
• Oil is traded in U.S. dollars, so dollar fluctuations impact oil prices. A stronger dollar and fluctuations in exchange rates make oil more expensive in other countries, potentially lowering demand. 
• Seasonal factors like winter heating demand in the Northern Hemisphere can also increase oil consumption and pricing. 

Please speak to our team for more information on fuel card pricing, including advice on how to save time and money on fuel management. 

The information provided in this post is for information only. It does not constitute financial advice. Pricing predictions are speculative and should not be relied upon for forecasting.

We share our insights into the factors impacting fuel prices, including predictions for fuel costs as we head into next week.

What determines fuel prices?

Wholesale fuel prices determine the price of petrol and diesel at the pump. They are influenced by a range of factors, including crude oil supply, demand, and pricing, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government.

Supply, demand and other factors:

• While geopolitical tensions can cause market uncertainty – especially in oil-producing regions such as the Middle East and Russia – global economic performance can slow demand and impact prices. 
• Oil is traded in U.S. dollars, so dollar fluctuations impact oil prices. A stronger dollar and fluctuations in exchange rates make oil more expensive in other countries, potentially lowering demand. 
• Seasonal factors like winter heating demand in the Northern Hemisphere can also increase oil consumption and pricing. 

Next Week’s Fuel Prices 

Despite all these factors, the market is expected to trade relatively stably next week unless a major event disrupts supply or demand. Monitoring oil production, trade policies, and global conflicts will be key to understanding where fuel prices will go from here.

Please speak to our team for more information on fuel card pricing, including advice on how to save time and money on fuel management. 

The information provided in this post is for information only. It does not constitute financial advice. Pricing predictions are speculative and should not be relied upon for forecasting.

We share our insights into the factors impacting fuel prices, including predictions for fuel costs as we head into next week.

What determines fuel prices?

Wholesale fuel prices determine the price of petrol and diesel at the pump. They are influenced by a range of factors, including crude oil supply, demand, and pricing, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government.

Factors influencing fuel prices this week

While fuel pricing has remained relatively stable, oil prices have risen slightly this week as supply disruptions and geopolitical tensions continue to influence supply/demand and pricing. 

Global supply disruptions and demand  

A series of supply interruptions have resulted in oil price fluctuations, which, in turn, impact fuel prices at the pumps. A Ukrainian drone attack on a significant oil pipeline pumping station has reduced oil flows by 30-40% – a drop of up to 380,000 barrels per day. Stormy weather at Russia’s Black Sea port caused further supply disruptions, temporarily stopping oil shipping. In the U.S., a cold snap in North Dakota has caused a production decline of 150,000 barrels per day. This has tightened U.S. supply and impacted the wider market. 

While supply remains volatile, upward trends in demand also influence global pricing. Cold weather in the U.S. has increased fuel consumption, and industrial activity in China is increasing. These factors have contributed to a global demand increase of 1.4 million barrels daily.

Geopolitical tensions 

Negotiations to end the Ukraine war added uncertainty to the market after U.S. and Russian officials met to discuss a possible resolution. If a peace deal is reached, it could lead to the lifting of some restrictions and sanctions on Russian oil. This could increase global supply and stabilise prices. However, Ukraine’s response suggests an immediate resolution is unlikely, bringing further uncertainty to oil supply and pricing. 

Despite this, and Trump’s promise to increase supply and lower fuel prices in the U.S., refinery maintenance season in the U.S. could reduce crude oil processing in the short term, potentially impacting fuel availability and prices. 

OPEC+ influence 

There is still uncertainty about whether OPEC+ will implement planned supply increases in April or delay them further. OPEC controls a large share of the world’s oil supply. Members decide how much oil to produce, which affects global prices.

Supply, demand and other factors:

• While geopolitical tensions can cause market uncertainty – especially in oil-producing regions such as the Middle East and Russia – global economic performance can slow demand and impact prices. 
• Oil is traded in U.S. dollars, so dollar fluctuations impact oil prices. A stronger dollar and fluctuations in exchange rates make oil more expensive in other countries, potentially lowering demand. 
• Seasonal factors like winter heating demand in the Northern Hemisphere can also increase oil consumption and pricing. 

Next Week’s Fuel Prices 

With supply disruptions tightening global oil availability and rising demand, fuel prices could remain slightly elevated in the short term. However, geopolitical negotiations and upcoming OPEC+ decisions add uncertainty that could shift the balance either way. 

Please speak to our team for more information on fuel card pricing, including advice on how to save time and money on fuel management. 

The information provided in this post is for information only. It does not constitute financial advice. Pricing predictions are speculative and should not be relied upon for forecasting.

We share our insights into the factors impacting fuel prices, including predictions for fuel costs as we head into next week.

What determines fuel prices?

Wholesale fuel prices govern the price you pay for petrol and diesel at the pumps. Wholesale prices are influenced by a range of factors, including supply, demand, and pricing for crude oil, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government.

What’s impacting fuel prices this week?

Fuel prices are expected to rise, with the market currently trading slightly higher than this time last week.

US economy and trade tarrifs:

Oil prices are climbing after President Trump delayed reciprocal tariffs on countries that tax US imports until April. This decision allays fears of an imminent trade war, boosting market confidence and demand expectations, which, in turn, pushes prices higher.

The US Federal Reserve has signaled that interest rates will not drop quickly unless economic data weakens. Higher interest rates make borrowing more expensive, which can slow down economic growth and reduce oil demand.

Oil production – supply/demand:

US oil production remains high. As the world’s largest oil producer, when the U.S. produces more oil, global supply rises. Generally, if the oil supply increases, prices at the pump respond by going down. However, at the same time, OPEC continues to limit its supply. Even though OPEC has more spare production capacity than it has had in over a decade, it is choosing to keep supply restricted, which increases oil prices.

Geo-politics:

A call between President Trump and President Putin may lead to peace talks in the Ukraine-Russia conflict, but there is concern that the US might offer concessions to Russia. Any shift in US-Russia relations could affect energy markets, particularly regarding sanctions on Russian oil and gas.
The US has also ramped up pressure on Iran, a key OPEC oil producer, aiming to block its crude exports entirely. If Iran’s oil supply is reduced, global supply tightens, increasing oil and fuel prices.

Supply, demand and other factors:

• While geopolitical tensions can cause market uncertainty – especially in oil-producing regions such as the Middle East and Russia – global economic performance can slow demand and impact prices.
• Oil is traded in U.S. dollars, so fluctuations in the dollar’s value impact oil prices. A stronger dollar makes oil more expensive for other currencies, potentially lowering demand.
• Seasonal factors like heating demand in the Northern Hemisphere can also increase oil consumption and pricing. This is expected to increase demand over the coming week.

Next Week’s Fuel Prices

With these developments, we anticipate that the market will continue to trade higher into next week, keeping fuel prices on an upward trajectory.

We share our insights into the factors impacting fuel prices, including predictions for fuel costs as we head into next week.

What determines fuel prices?

Wholesale fuel prices govern the price you pay for petrol and diesel at the pumps. Wholesale prices are influenced by a range of factors, including supply, demand, and pricing for crude oil, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government.

Factors influencing fuel pricing this week

Russian supplies

Ukraine has intensified its attacks on Russian energy infrastructure in recent weeks. This week, the Lukoil refinery, the biggest refinery in southern Russia, was attacked by Ukrainian drones. Crude oil deliveries to the refinery have been halted, with supplies being sent from inventory.

Russia’s oil industry is under strain, with overall refining volumes dropping to their lowest levels since 2012. Geopolitical instability, especially in major oil-producing nations like Russia, tends to create uncertainty in global energy markets. This often drives oil prices higher as traders factor in potential future disruptions.

US politics and sanctions 

There’s plenty of uncertainty in global crude flows – especially with fresh U.S. sanctions putting Russian and Iranian exports at risk. Sanctions could reduce crude oil exports from major suppliers, tightening global supply. When supply shrinks, prices tend to rise.

Prices fell on Thursday after Trump repeated his plan to raise U.S. oil production, especially after the country reported a much bigger than anticipated jump in crude inventories. If the U.S. ramps up oil output – especially when inventories are high – it could lead to an oversupply in the market. More supply with steady or weakening demand typically pushes prices down. 

OPEC 

With Russian and Iranian exports at risk, buyers in Asia are turning to OPEC producers. Higher demand for OPEC oil could push prices up, especially if production capacity is already tight.

Supply, demand and other factors:

• While geopolitical tensions can cause market uncertainty – especially in oil-producing regions such as the Middle East and Russia – global economic performance can slow demand and impact prices. 
• Oil is traded in U.S. dollars, so fluctuations in the dollar’s value impact oil prices. A stronger dollar makes oil more expensive for other currencies, potentially lowering demand. 
• Seasonal factors like heating demand in the Northern Hemisphere can also increase oil consumption and pricing. 

Next Week’s Fuel Prices 

Looking ahead, we expect the market to remain stable into next week. One big development to watch is India ramping up its refining game—they’re adding 1 million barrels per day of refining distillation capacity, second only to China. This could shake up global oil flows in the long run.

aWe share our insights into the factors impacting fuel prices, including predictions for fuel costs as we head into next week.

What determines fuel prices?

Wholesale fuel prices govern the price you pay for petrol and diesel at the pumps. Wholesale prices are influenced by a range of factors, including supply, demand, and pricing for crude oil, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government.

Factors influencing fuel pricing this week

Trump and US policy: 

President Donald Trump has said he will follow through with his threat to hit imports from Canada and Mexico with 25% border taxes, known as tariffs, on 1 February. He also stated that a decision about whether this would include oil from those countries had not yet been made. 

Canada and Mexico are the largest crude oil suppliers to the U.S., so this decision is likely to impact supply, demand and pricing. Any U.S. sanctions on Iran or Venezuela could also tighten supply, though OPEC (see below) has spare capacity to compensate for potential losses.

The American Petroleum Institute (API) reported a 2.86 million-barrel increase in U.S. crude stockpiles, signalling weaker demand and pushing prices down.

OPEC:

Last week, President Trump urged the Organization of the Petroleum Exporting Countries (OPEC) to lower oil prices. In response, Saudi Arabia and other OPEC+ members discussed their production plans ahead of a key meeting on February 3rd. While some reports suggest OPEC will stick to its plan to increase production in April, others say it’s still uncertain. Either way, Trump’s push to boost U.S. oil production is likely to be high on the agenda. 

OPEC influences oil prices because it controls a large share of the world’s oil supply. Its members meet regularly to decide how much oil to produce, which affects global prices.

The Global Economy:

China’s manufacturing slowed in January, raising concerns that the country – the world’s largest crude oil importer – will use less oil. On top of that, new U.S. sanctions on Russian oil could disrupt Chinese refineries. Some independent refineries in China have already shut down for indefinite maintenance periods.

Supply, demand and other factors:

• While geopolitical tensions can cause market uncertainty – especially in oil-producing regions such as the Middle East and Russia – global economic performance can slow demand and impact prices. 
• Oil is traded in U.S. dollars, so fluctuations in the dollar’s value impact oil prices. A stronger dollar makes oil more expensive for other currencies, potentially lowering demand. 
• Seasonal factors like winter heating demand in the Northern Hemisphere can also increase oil consumption and pricing. 

Next Week’s Fuel Prices 

Fuel prices next week will continue to be influenced by uncertainty around President Trump’s policies. Sluggish economic recovery in China could keep demand subdued, while geopolitical risks continue to add uncertainty.

We share our insights into the factors impacting fuel prices, including predictions for fuel costs as we head into next week.

What determines fuel prices?

Wholesale fuel prices govern the price you pay for petrol and diesel at the pumps. Wholesale prices are influenced by a range of factors, including supply, demand, and pricing for crude oil, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government.

Factors influencing fuel pricing this week

Prices have fallen in comparison to this time last week, influenced by uncertainty around the new Trump administration and a slight easing of Middle East tensions. 

Trump and US policy: 

Oil prices were little changed at the start of the week with lots of attention being paid to Donald Trump’s inauguration. While campaigning, Trump pledged to impose trade tariffs on Canada and Mexico on his first day as president. The week started with an announcement that no tariffs would be imposed immediately – causing the dollar to drop. Oil is traded in U.S. dollars, so fluctuations in the dollar’s value impact oil prices. 

On Wednesday, Trump again said he planned to hit the European Union, Canada, Mexico and China with tariffs. Tariff decisions such as these are likely to impact global growth and oil demand prospects.  As attention shifts to a possible February timeline for new tariffs, it is likely that prices will continue to fluctuate. 

Prices were further impacted by announcements of plans to boost U.S. production, news that Trump wants to cut interest rates, and demands that OPEC move to lower crude prices. Changes to production, US interest rates and OPEC prices can all have an impact on supply and demand. 

At the same time, U.S. oil inventories dropped, reaching their lowest point since March 2022. More demand for oil can temporarily push prices up. But this wasn’t enough to outweigh other factors causing prices to fall this week.

Middle East Tensions:

The Middle East holds approximately 48% of the world’s proven oil reserves. Disruptions in production or export from the region, or political upheaval, can immediately affect global supply and prices​. 

Tensions involving Iran, Israel, or Yemen can threaten critical shipping routes like the Strait of Hormuz, which can impact supply and prices. Oil tankers carry approximately 17 million barrels of oil each day through the Strait, or 20 to 30 percent of the world’s total consumption. Midway through the week, a ceasefire between Isreal and Hamas (which follows 15 months of war) resulted in a rebel group scaling back their attacks on commercial vessels – easing supply concerns. While the situation remains very volatile, lower risks typically mean fewer disruptions and lower costs, which can stabilise supply chains and help bring oil prices down.

Supply, demand and other factors:

• While geopolitical tensions can cause market uncertainty – especially in oil-producing regions such as the Middle East and Russia – global economic performance can slow demand and impact prices. 
• Oil is traded in U.S. dollars, so fluctuations in the dollar’s value impact oil prices. A stronger dollar makes oil more expensive for other currencies, potentially lowering demand. 
• Seasonal factors like winter heating demand in the Northern Hemisphere can also increase oil consumption and pricing. 

Next Week’s Fuel Prices 

We predict the market will continue trading lower 

Fuel prices next week will continue to be influenced by President Trump’s policies, including aims to boost U.S. production and the ongoing possibility of sanctions hitting demand. Sluggish economic recovery in China could keep demand subdued, while risks from the Russia-Ukraine conflict and the Middle East continue to add uncertainty.

Warnings of fuel price rises have hit the news this week, with drivers being told to brace themselves for higher motoring costs. With the price of petrol and diesel rising, The Fuel Store team explores the reasons behind the increase, and what can be done to manage fleet fuel costs.

The impact of rising fuel costs

With geopolitical and economic tensions exacerbating price uncertainty into 2025 (more on this below), it can be hard for businesses and fleet operators to manage cash flow. Business vehicles, and the cost of running a fleet, represent a significant cost for many UK companies. As fuel costs climb, so do business operating expenses. Companies heavily reliant on transportation—such as delivery services, manufacturers, and import/export businesses—face difficult decisions about whether to absorb these costs or pass them on to their customers.

Higher fuel prices also affect consumer purchasing power, potentially leading to reduced demand and negatively influencing the broader economy. Beyond the direct impact of increased transportation costs and diminished consumer spending, rising fuel prices can disrupt supply chains, often passing additional expenses onto small businesses. With fuel prices fluctuating daily, forecasting expenses and managing cash flow becomes increasingly difficult. For small businesses, accurate cost projections are critical for maintaining long-term profitability.

Look for incremental savings

While not a magic bullet, corporate fuel cards can help shave a significant chunk off fuel costs – as well as saving valuable time on expense management. In 2023, the average saving for our fuel card holders sat at around 12.5 pence per litre. AdBlue users also stand to benefit from savings on bulk purchases.

Monitor and manage cash flow

While not a direct reduction in the cost of fuel, fuel cards can help when it comes to managing business cash flow. Weekly invoicing for fuel allows fleet managers to keep tabs on fuel spending, and budget for fuel costs, helping to manage cash flow more effectively. For customers such as Tomsetts Distribution, who had always bought full bunker loads of 36,000 litres of diesel every month, moving to fuel cards made a huge difference to cash flow. Pre-pay or fixed pricing options can help further.

Increase efficiency with data-driven fleet management

With driver shortages impacting efficiency, and costs escalating, taking a deep dive into fleet data can help fleet managers to identify actionable insights that directly impact the company’s bottom line. All of our fuel card customers get access to an online portal that provides data such as fuel spend and usage, transactions, card and budget management tools.

Those looking for deeper business insight can opt to add software called Fuel AI – a handy tool that can combine and analyse a host of data, helping fleet managers to quickly identify trends. Having access to this data can support data-driven decision-making, which, when used to its full potential, can save as much as 9% off fuel costs.

Avoid costly fines – stay compliant

With DVSA officers tasked with spot-checking vehicles, those who don’t comply will be subject to fines, and can be taken off the road – both of which can cost firms dearly. Driver Toolkit digitises the vehicle checking process, helping to reduce the costly fines associated with non-compliance. Managers simply send drivers a QR code, drivers complete the checks on the digital platform, and submit the result. As well as ensuring safety and compliance, fleet managers have a record of results, and data can be easily retrieved in the event of a DVSA roadside check.

Avoid the risk of card fraud

During July-September 2023, the DVLA received over 39,000 requests for information on drivers thought to be guilty of fuel theft – 77% more than 2022. Cases of fuel theft have been numerous in recent years, from a bin lorry driver who stole £42,000 of fuel, to a delivery driver who stole more than £56,000. While some cases involve huge amounts of money, others can be as simple as drivers using cards to top up personal vehicles – but the amount soon adds up. Investing in protection against card fraud is an important step to protecting your business against unexpected costs.

What influences fuel pricing?

Wholesale fuel prices govern the price that businesses and consumers pay for petrol and diesel at the pumps. These prices are influenced by a range of factors, including supply and demand; pricing for crude oil and oil refinery production levels; the pound-to-dollar exchange rate; socio-economic and political factors; the margin (profit) taken by fuel retailers; and fuel duty and VAT charged by the Government.

Fuel costs – a year in review

As the list of factors outlined above suggests, the situation isn’t a simple one. The factors influencing fuel prices can vary from week to week – a topic we do our best to tackle via our weekly Fuel Price Pulse blog and customer communications.

This year has been no exception to the rollercoaster ride that is fuel pricing. 2024 was marked by escalating instability in Ukraine and the Middle East. Global economic challenges including a weak Chinese GDP fuelled fears of a global economic slowdown, while OPEC+ production cuts also impacted pricing.

Prices dipped to their lowest level for almost three years in September, when forecourt prices were nearly 7p per litre cheaper across the UK than the month before. Trump’s re-election in Q4 triggered market rallies and talk of sanctions. During the same period, Iran-Israel conflicts intensified, Ukraine deployed long-range missiles, and OPEC extended production curbs into 2026.

Fuel pricing – the current situation

In recent weeks, prices have been climbing steadily. Ongoing geopolitical tensions between Russia and Ukraine, as well as Middle East unrest, combine to create market uncertainty – a risk to oil-producing regions could impact supply – pushing prices higher. US Sanctions on Russia and Iran have also threatened to reduce supply and push prices upwards.

Meanwhile, data released by the US last week pointed to stronger economic activity. As a major oil consumer, improvements in economic activity in the US set expectations for a boost in demand for oil. Business activities also accelerated more than expected in major European economies, including Spain, Italy, France, and Germany, which is also expected to boost demand. Meanwhile, traders are closely watching China’s stimulus plans, which could drive demand further. While these signs of economic recovery are positive, increased demand, combined with volatility in supply, tends to push prices higher. Cold weather has also put pressure on fuel supplies.

Choosing the right partner

Fleet management is a complex undertaking. Sustainability, digital transformation, e-commerce trends, risk management and workforce management will continue to drive change in 2025 – while outside influences will continue to impact pricing. Working with a supplier that can help to identify fleet and fuel efficiencies, however small, could make all the difference to the road ahead.

Speak to our team to find out more about how we can reduce your fleet fuel spend in 2025.

Robin, Customer Success Manager at The Fuel Store, shares his insights into the factors impacting fuel prices, including his predictions for fuel costs as we head into next week.

What determines fuel prices?

Wholesale fuel prices govern the price you pay for petrol and diesel at the pumps. Wholesale prices are influenced by a range of factors, including supply, demand, and pricing for crude oil, oil refinery production levels, the pound-to-dollar exchange rate, socio-economic and political factors that might impact production/demand, the margin (profit) taken by fuel retailers, and fuel duty and VAT charged by the Government.

Factors influencing fuel pricing this week

Oil prices have risen compared to this time last week, buoyed by continuing weather-driven demand and geopolitical developments.

Geopolitical influences on oil prices

Oil prices started the week lower as traders took profits from recent price increases. However, as the week progressed, prices rose slightly due to tighter supplies from Russia and OPEC (the Organisation of Petroleum Exporting Countries). On Friday, oil prices surged as traders focused on possible disruptions in supply due to more sanctions against Russia and Iran.

US Sanctions

In the US, the outgoing Biden administration plans to impose more sanctions on Russia’s oil exports ahead of Donald Trump’s inauguration on 20 January, at which point Trump is expected to reinforce restrictions on Iran’s oil exports – potentially causing a supply disruption of around 1% of global supply.

Global economic activity

New U.S. data showed an unexpected increase in job openings, pointing to stronger economic activity. As a major oil consumer, improvements in economic activity in the US set expectations for a boost in demand for oil. Over the last month, business activities also accelerated more than expected in major European economies, including Spain, Italy, France, and Germany, which is also expected to boost demand.

Traders are also closely watching China’s stimulus plans, which could drive more demand for oil. Supplies remain tight after the holiday season, adding pressure to prices.

Supply, demand and other factors

• While geopolitical tensions can cause market uncertainty – especially in oil-producing regions such as the Middle East and Russia – global economic performance can slow demand and impact prices. 
• Oil is traded in U.S. dollars, so fluctuations in the dollar’s value impact oil prices. A stronger dollar makes oil more expensive for other currencies, potentially lowering demand. 
• Seasonal factors like winter heating demand in the Northern Hemisphere can also increase oil consumption and pricing. 

Next week’s fuel prices

We expect fuel prices to rise next week, due to forecasts of unusually cold temperatures in Europe and the U.S, which drive up the demand for fuel. In addition, last-minute sanctions against Russia from the Biden administration could reduce supplies further, pushing prices higher. With these factors in play, prices are likely to stay volatile.