Sterling Rout Sees UK Miss Out on Oil Price Tumble
A cluster of one pound sterling coins stand on top of five, ten and twenty pound banknotes in this arranged photograph in London, U.K., on Wednesday, Oct. 14, 2020. Pound traders are remarkably nonchalant even as U.K. Prime Minister Boris Johnson's self-imposed deadline of Oct. 15 to get a trade deal with the European Union looms large. Photographer: Hollie Adams/Bloomberg
, Bloomberg
Alex Longley, Bloomberg News
(Bloomberg) -- The slump in sterling means the UK consumers are unlikely to feel much benefit from a recent drop in oil prices. After slumping since summer, Brent crude is now up a little less than 10% this year in dollar terms but remains 40% up in sterling. The divergence ultimately feeds through into fuel prices because oil refiners must pay dollars for crudes that they turn into gasoline and diesel.
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