Are The Fuel Markets Stable?

Why should stability be a precursor to instability?

A recent article in the Washington Post referred to the economist, Hyman Minsky, who explained, “Financial stability is destabilizing. The longer markets are calm, the more people plan on them staying that way. People take bigger risks and take on bigger debt because it doesn’t seem like anything can go wrong — until it does, and all this leverage turns small losses into big ones due to forced selling from margin calls.”

Or the expression, “what goes up, must go down.” Currently, the diesel fuel market is healthy and fleet fuel prices are in a good place for most companies.

Could they be in a better place for you? (free fuel audit before budget season) For most companies, that answer will be “yes” because they lack informative data and insights drawn from deep experience to make key business decisions regarding their fuel spend. (Break to Blog page) Data dumps from fuel card companies or truck leasing companies do not make you a smarter diesel fuel buyer, just a person with a whole lot of numbers that need to be analyzed and interpreted.

Fuel markets are currently stable due to crude oil inventories running high and refineries approaching maximum output. As a result, distillate fuel oil (diesel fuel) prices have remained at some of the lowest levels over the past five years.

In short, instability can happen quickly with diesel fuel like it has in the past. We always take the stance that you should know, at all times, how good your fuel management program is performing.

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