With 2010 diesel fuel prices ending strong and future oil demands on the rise. Here we could be going again from an article written by Jeff Cox.
Since then, crude has found some sense of equilibrium, wading now in the $80-$90 range but after a healthy 13 percent gain for the year. The global growth story, along with weakness in the US dollar, is likely to put more upward pressure on oil prices ahead, driving a variety of opportunities for investors to capitalize.
“We have been bullish on energy stocks, and an improving trend for crude oil prices may provide further support for higher prices in the stocks,” BofA technical research analyst MaryAnn Bartels wrote in a research note for clients. “The technicals for crude oil are bullish and we can project a measured move to $118-120. We continue to recommend exposure to the energy sector across all groups.”
At $100 oil prices, we are looking at diesel fuel prices to be $3.50 nationally. If crude oil goes to the $118 to $120 range we over $4.00 a gallon for diesel fuel prices. Your fleet fueling costs are ready to take a jump according to all of the major players. An increase in diesel fuel prices will also cause diesel fuel additives to increase and of coarse your fuel card or fleet card will be breaking limits at those kinds of numbers. Mobile fueling will be at a premium because supply for drivers is starting to get tight and with the new laws on the books, fleet companies are going to want their drivers, driving and not fueling, even if it might provide them some fuel savings. Mobile fueling will make it easier to keep fleet companies drivers hours down.
I know sometime as a fuel management company, we get poked by fleet managers -fuel managers that we are saying the sky is falling. As a company that cares about fleet management and cares that fueling costs don’t go crazy, this is not coming from Sokolis Group. Right now their is a way in the market, just like the stock market keeps going up, diesel fuel prices are going to go up according to this report.
The best thing is to be proactive. If you can change your fueling budget for next year, increase your fueling cost by a little. Reach out to your fuel card -fleet card company and get an increase in credit now before diesel fuel prices go up. Do the same if you have a mobile fueling provider. Keep fleet fueling cost low by putting money saving and fuel saving strategies in place. Don’t throw over the life raft after the ship has sunk.