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- Global oil prices dipped to a seven-month low on Wednesday.
- The prices reached a session low of $91.35, the lowest since February this year.
Global oil prices slipped over US$1 on Wednesday, hitting the lowest levels since before Russia invaded Ukraine. Brent crude futures slumped 1.5% or US$1.35 to $91.48 a barrel. The prices reached a session low of $91.35, the lowest since February this year.
This comes as fears of a global recession and COVID-19 curbs by China, a huge importer of crude, renewed the concerns of lower fuel demand.
However, despite the drop in global oil prices, British motorists are yet to get significant relief in fuel rates as forecourt operators are not passing on the benefits to the customers. According to RAC, drivers are still getting a 'raw deal' at the forecourts.
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The motoring organisation said it believes that the prices at pumps are way off than they should be in the wake of the present wholesale rates. At the end of August, a litre of unleaded fell to 169.8p, but RAC said it believes the average prices at forecourts should be around 161p.
RAC also found that retailers are charging differently in different areas, adding that the UK seems to be among the least generous countries when it comes to supporting motorists against high fuel prices.
Several surveys have claimed that people drive less due to the soaring fuel prices.
Amid the developments, Kalkine Media® explores some London-listed stocks.
BP Plc (LON: BP.)
BP. is a major oil and gas firm and a constituent of the FTSE 100 index. Its stock value has appreciated by almost half in the last 12 months, and the YTD return currently stands at 34.98%. The company enjoys a market cap of £85,129.54 million and an EPS of 0.38. It will pay an interim dividend of US$0.06006 per ordinary share to shareholders on 23 September. Shares of the company were down 1.44% at GBX 446.20 as of 10:04 am GMT+1 on Wednesday.
Tesco PLC (LON: TSCO)
The UK's largest supermarket chain operates fuel forecourts and is a constituent of the benchmark FTSE 100 index. It holds a market cap of £19,076.36 million. The stock price has declined by 1% over the past 12 months, and the year-to-date or YTD return has dropped to -12.18%. The company holds a positive EPS of 0.19. Shares of Tesco were trading at GBX 254.60, down 0.51% as of 9:48 am GMT+1 on Wednesday.
J Sainsbury Plc (LON: SBRY)
Sainsbury's is another supermarket chain and fuel forecourt operator listed on the FTSE 100. The company has announced a £65 million investment this month into its pricing to ease inflationary pressures. With a market cap of £4,921.25 billion, the stock value has depreciated by over 31% in the past 12 months. It was trading 0.57% lower at GBX 208.70 as of 9:56 am GMT+1 on 7 September.
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