This week the Department of Energy announced diesel fuel prices nationwide were $3.956. This makes diesel fuel 10 cents cheaper than just 2 weeks. Some parts of the country still are facing supply constraints like the West Coast, still saw diesel fuel prices at $4.233 a gallon.
Good news keeps coming though for fleet fuels. Crude oil yesterday closed at a 7 month low to 89.90. Crude oil stocks also had another good week of inventory builds to a record 46.795 million barrels.
Where are things going to go from here, I would bet lower still. Greece is not doing anything for the Eurozone and I would expect slower growth throughout that area. China demand for diesel fuel has been down but this week announced that they need to grow their country more so we will have to see how all of that takes shape.
Iran is looking like they might be coming to their senses for as much as Iran can. As they have been in talks about their nuclear program. If they can get something worked out with the U.N. that will bring more oil into play on the market, which should help push down fuel prices more.
Iraq is producing more oil today, than they have in over 20 years. Also, more good news for fuel managers. The U.S. dollar is getting stronger. Since oil is traded in U.S. dollars a stronger dollar means lower fuel prices.
What can go wrong? Anything and everything but for now let’s watch diesel fuel prices fall some more for fleet companies to enjoy some fuel savings after what was several difficult months.