Proactive Investors - A combination of low fuel pump prices and a dip in Brent crude oil forecasts is weighing on big-cap oil stocks this Thursday.
BP plc (LON:BP) is currently the biggest faller on the FTSE 100, having shed 4.3% from its share price, while Shell PLC (LON:SHEL) is currently off 3.7%.
Earlier this week, Rabobank estimated that Brent crude oil will fall to US$71 a barrel for the rest of the year and to average US$70 in 2025.
Rabobank had already reduced its forecast to US$82 for the rest of 2024 but recent confirmation of poor Chinese and US demand data and a looming glut of supply caused the Dutch firm to reassess its outlook.
The outlook coincides with petrol and diesel prices at the UK pumps hitting a three-year low.
Average petrol prices across the country’s forecourts hit 135.87p on Tuesday, said the RAC, having fallen from a peak of 192p in July last year.
RAC added there was scope for fuel prices to fall further over the months ahead as retailers pass on lower wholesale costs.
“A relatively low oil price, caused by lower demand globally, and a relatively strong pound are the two factors that are contributing to pump prices falling,” spokesperson Simon Williams said.
BP shares were swapping for 383p and Shell for 2,441p as of Thursday morning.