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Speaker 1: Oil price. At the moment, price of oil is falling,

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Speaker 1: as Andrew mentioned quite a bit. Sixty six yius WT

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Speaker 1: I sixty six YSS this morning and the Bretons Brent

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Speaker 1: is sitting at sixty nine or thereabouts. It means a

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Speaker 1: decent time with the pump, is what I'm trying to say.

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Speaker 1: Why time I group CEO Simon pirams with a Simon

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Speaker 1: very good morning to you. Should we have a warning

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Speaker 1: as we always do in terms of you know, the

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Speaker 1: oil price at any given time. That's not about what

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Speaker 1: the wtis or the brents. It's got a whole lot

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Speaker 1: of other factors in it.

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Speaker 2: Oh, there's certainly different factors at play, but I think

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Speaker 2: we will see an easy and fuel prices with all

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Speaker 2: those factors that are increasing supply and to demand. At

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Speaker 2: the moment. You know, we've already seen a ten cent

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Speaker 2: toleter drop since January, so those prices are definitely coming

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Speaker 2: through In New Zealand.

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Speaker 1: What's going on? Do you see a trend here, something

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Speaker 1: a little bit permanent for the year or at least

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Speaker 1: a few months or not?

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Speaker 2: Ah Well, I guess if you look at the two

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Speaker 2: key factors, the lower underlying crew price and you know,

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Speaker 2: that's lead by Trump and Opex. So on the Trump factors,

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Speaker 2: he famously said, drill, baby, drill, so we expect more

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Speaker 2: oil into that US market, so increased supply. Then there's tariff,

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Speaker 2: which you just talked about, so I guess the consensus

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Speaker 2: there is that tariffs are not good for trade and

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Speaker 2: that's leading to lower economic growth, which is a decreased demand.

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Speaker 2: And then finally Russia, you know, potential easing of sanctions

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Speaker 2: against Russia, which would leap to increased supply there. And

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Speaker 2: then on the Opex side, which is probably new to

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Speaker 2: a few of your listeners, is that they planted out

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Speaker 2: about one hundred and thirty eight thousand barrels a day

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Speaker 2: from April, so that's about another two percent increasing global supply.

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Speaker 1: So what's you feel on prices low as still or not?

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Speaker 2: Well, there's volatility, so I think it's going to sort

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Speaker 2: of hover about where we are. We are being sort

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Speaker 2: of held back a bit by that weak New Zealand

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Speaker 2: dollar at about fifty five cents to the dollar. You know,

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Speaker 2: that's really the damage is done has been done on

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Speaker 2: that for the last six to eight months. So I

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Speaker 2: would say we're probably in a period of good value

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Speaker 2: for the consumer at the moment.

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Speaker 1: Okay, good, while I've got you. There was a report

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Speaker 1: a couple of weeks ago on margins normally historically apparently

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Speaker 1: about eleven percent, they'd crept up to fifteen or sixteen.

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Speaker 1: Do you know what's going on and are you gouging?

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Speaker 2: There's certainly no gouging going on. I think there's sometimes

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Speaker 2: you see margins where they are potentially a little bit

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Speaker 2: higher than the average, and then they're lower. So you know,

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Speaker 2: you look across in the year and you always just

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Speaker 2: look at their average and what you can return for

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Speaker 2: the business.

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Speaker 1: And what happens. Who decides how many meetings are held

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Speaker 1: and why does that vary on any given day.

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Speaker 2: Ultimately it's the market that plays out. You know, we

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Speaker 2: look at trying to provide a sustainable price and we

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Speaker 2: want to be competitive in the market at markets where

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Speaker 2: we operate, so you know, we try to give the

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Speaker 2: best price we can and try to attract as many

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Speaker 2: custom as we can. That's with a competitive prices.

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Speaker 1: Pleasure to have you on the program. You have a

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Speaker 1: good week in Simon Perum, who's the one time O

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Speaker 1: Group CEO?

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Speaker 2: For more from the mic, asking Breakfast. Listen live to

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