The crazy rush that everyone had just several weeks ago about $5 diesel fuel prices and $5 gas prices has seem to take a bearish turn. As we all know these things happen when buying fleet fuel, one day it looks gloomy and the next day it looks a little brighter. The director of petroleum risk management for Pilot/Flying J Travel Center says he is bearish because U.S. stocks of crude oil and refined product (diesel fuel, gas, etc) are ample and usage rates are not particularly high. With that said worries about international politics and finances are currently far more influential than supply and demand. Several of our clients at Sokolis Group have been worried about how high things might go but during a storm, it’s never really a good idea to change company philosophies.
Gasoline analyst Trilby Lundberg fells that the peak gas prices might have already been reported a couple of weeks ago. “Crude oil prices have slipped and if they don’t rebound in the near future, gas prices will peak soon, if they haven’t already,” she told Bloomberg.
Prices at diesel fuel pumps and gas pumps have either stayed the same over the past few weeks or have started to come back down which is great for all. We believe that we will continue to see prices fall over the next several weeks. At this point history would say, unless crude oil starts to take off again or we have refinery issues or a war with Iran, we should see prices go back to the high $90 a barrel range.