The Sokolis Group is a fuel management and consulting company with a staff of 9 professionals located in Warrington, PA. As a company we work with small and large companies nationally to help them buy, manage, audit and process their fuel better. Over the last year when fuel prices rose, we helped companies reduce their carbon footprint and how much fuel they consumed.
Oil had been trading near $40 for about two weeks, underpinned by OPEC production cuts. The Organization of Petroleum Exporting Countries, which accounts for about 40 percent of global crude supply, said earlier this week it has completed about 80 percent of 4.2 million barrels per day of output cuts announced since September.
Oil prices remain around $40 a barrel. Oil prices will remain at $40 a barrel or lower for a long period of time, why? Nearly 600,000 jobs were slashed in the United States last month, the most severe cut since December 1974. Let’s not forget that the last 4 months we have had 500,000 job losses in each month. That is a lot of lost jobs. If you don’t have a job, you don’t have any place to go. If you don’t have a job you can’t afford to buy fuel.
In was another wild day for fuel prices on Monday. Oil prices tumbled nearly 4 percent Monday in a volatile trading day fraught with more bad economic news. Bad news, that is about the only news that we usually get anymore when we talk about the economy.