It’s the holiday season, so here are 3 fleet fueling tips that you might want to consider.
Diesel fuel prices continued to decline, with fleet fueling falling 4.6 cents to $3.945 a gallon, its eighth drop in the past nine weeks, which was a nice present for Xmas. Gas prices provided even more of a present falling by almost a dime to its lowest level this year. Go way to end the year on a low gas price note, I guess we still need to see what gas prices will be on December 31. Gasoline fell 9.5 cents to $3.254 a gallon.
It seems every year the transportation industry faces new perils during the winter months and this year is no different.
The Department of Energy has forecasted that diesel fuel prices for 2013 at $4.84 a gallon. That would be great because it would be 15 cents per gallon cheaper for diesel fuel in 2013 than it was in 2012. I hate to be the person of bad news but it very common that the DOE gets their forecasts for fleet fuel prices correct. I will admit, it is no easy feat. With so many moving parts in what makes up the price of diesel fuel, nobody is ever right.
Over the last several weeks, gas prices have been falling quickly. Information that we received from OPIS Oil Price Index Service shows the craziness on gas prices. It also shows that your fuel card is probably taking a little bit of a rest for right now from coming out of your pocket.
Diesel Exhaust Fluid has become more and more of the trucking world’s life. Just a couple of years ago, who even heard of this stuff. Now, all of your major truck stops like Pilot Flying J, Love’s Travel Centers, Travel Centers of American and many other truck stops are spending hundreds of thousands of dollars per location to be able to handle diesel exhaust fluid. Since all new trucks since 2010 with SRS technology must have diesel exhaust fluid to operate, it will almost be as popular at a truck stop as diesel fuel.
Diesel fell 0.7 cent to $4.027 a gallon, turning around last week’s 5.8-cent gain, while gasoline fell for the seventh time in eight weeks. Gasoline dropped 4.3 cents to $3.394 a gallon. The motor fuel has declined 45.6 cents since early October, rising only once, a 0.8-cent gain last week. The diesel decline leaves trucking’s main fuel 9.6 cents over the same week a year ago, while gasoline is 10.4 cents higher than the same week last year. Last week’s diesel jump was the biggest in three months, since a 6.3-cent increase on Aug. 27. It had declined 17.4 cents in five consecutive declines before last week’s gain.
Bloomberg News is reporting that for the first year since the commodity futures were created, Brent crude is poised to overtake West Texas Intermediate oil as the world’s most-traded commodity. That would be a first.
Daily trading in Brent jumped 14 percent to average 567,000 contracts in the year to Nov. 20 compared with all of 2011, while WTI fell 17 percent to 575,000, according to data from the ICE Futures Europe exchange in London and New York Mercantile Exchange compiled by Bloomberg. The number of Brent futures changing hands has exceeded those for WTI every month from April through October, the longest streak since at least 1995.
And yet, U.S. media focuses primarily on WTI crude.
Brent, produced in the North Sea, is gaining favor among traders because of its role as the benchmark for energy prices from Saudi Arabia to Russia. Prices have climbed 34 percent in the past two years, reflecting everything from war in Libya to the embargo on Iran. WTI, the main grade in the U.S., has risen 9 percent as the nation, which prohibits crude exports, has struggled to clear a glut at Cushing, Oklahoma, the delivery point for Nymex futures.
Bloomberg expects Brent to gain the upper hand. “Brent crude will grow in significance,” Angelos Damaskos, manager of the Junior Oils Trust, which invests about 45 million pounds ($72 million) in energy companies, said by phone from London on Nov. 20. “The market is looking at Brent as the international leading index for traded crude. It will be a trend that will continue for a very long time.”
WTI’s discount to Brent will narrow next year with the expansion of a pipeline that transports crude from Cushing to refineries in Texas and Louisiana, according to Greg Sharenow, who co-manages $30 billion of commodity investments at Pacific Investment Management Co. in Newport Beach, California.
Additionally, the Seaway pipeline, operated by Enbridge Inc. (ENB) and Enterprise Products Partners LP (EPD), will be able to send 400,000 barrels a day from Cushing to the Houston area from Jan. 1, compared with 150,000 a day now, Enterprise Chief Executive Officer Mike Creel said on Nov. 13.
To date, Brent has averaged $111.91 a barrel this year, and WTI $94.78, putting the North Sea marker closer to the average price of a basket of crudes sold by the Organization of Petroleum Exporting Countries, at $109.74.