I am all for an economic turn around. It can’t happen fast enough for any of us but are we going against false hopes at least in fuel?
So U.S. gasoline stocks declined unexpectedly last week, falling 200,000 barrels to 212.4 million barrels, the Energy Information Administration said on Wednesday.
The EIA reported that crude inventories increased 600,000 barrels last week to a fresh 19-year high at 375.3 million barrels, a smaller build than expected. Yes, you read that correctly a fresh 19 year high. We are really swimming in oil.
Ok, Michael Phelps swimming in oil. Then why has fuel rose over 10% in the first 3 days of this week? Hope, the hope that fuel is going to go up because the economy is getting better. Sure it’s getting better don’t you see all of the people dancing in the streets! Oh, my bad those are the unemployed workers, bankers going through “stress tests,” earns off by some companies.
I don’t want to be Joe the Downer or Joe the Plumber or anything like that, we have all seen the market raise 2,000 points over the last 7 weeks or so and that is great. Did any of us truly feel that the market should have gone that low? No! Gloom and doom media hype. Did we see it in fuel last summer? Remember at the gas pumps $4.00 a gallon, diesel fuel $5.00 a gallon. Fuel was the top story everyday and they weren’t talking about cheap gas or cheap diesel fuel.
Prediction today. Fuel won’t reach $60 a barrel over the next 3 months and the Dow will get to 10,000 before crude oil gets to $70 a barrel.
When you call me to tell me I was wrong, if I am remember that predicting the future is not my business. Fuel management and fuel consulting are which are things we can control. For more information on how you can make your company stronger reach out to Sokolis Group, Fuel management and Fuel consulting at www.sokolisgroup.com & 267-482-6155. Your company needs a solid fleet fuel program, let us put a fuel program in place for you now.