RED DIESEL prices have eased slightly following a fall in the price of crude oil.

Nick Adamson of Oxon-based fuel dealer Ackerman & Niece said farm diesel was now about 21-22p/litre after reaching 23p/litre.

World oil prices have fallen following an agreement by the Organisation of Petroleum Exporting Countries to raise its daily production ceiling of 23.5m barrels to 2m next month and another 500,000 barrels in August.

The US has also increased its oil stocks.

Brent Crude slipped below $35 a barrel for the first time in over a month following the news.

But Mr Adamson said: “It would only take one more serious incident in the Middle East and we would be back to where we were before.”

Oil prices reached 21-year highs last month, rising to over $40 a barrel, following concerns over terrorist activity, increased demand from China and low US reserves.