Forecast of Fuel Prices in 2021

 - Photo: Skitterphoto

Photo: Skitterphoto

The price tag on gas is influenced by numerous factors making predictions difficult. But there are particular variables which are in play today, makes it possible for us to extrapolate and expand those trend lines in to the next calendar-year and interpret possible results.

Candib -

Candib

“With demand nevertheless dramatically lower than historic averages and proceeded supply to hold to 2021, rates will continue to stay fairly flat throughout the remainder of 2020 and into 2021,” stated Emily Candib, director – fleet products for Merchants Fleet. “Traditional need likely to get in May-June and raise costs along side force on refineries to help keep speed.”

The price of fuel is certainly much influenced by supply-and-demand characteristics, which are forecast to enhance in CY-2021.

Dudeck -

Dudeck

“We anticipate you will see a gradual rise in gas cost in 2021 as need increases and manufacturing supplies are paid off to your brand new normal demands,” said Justin Dudeck, product manager, analytics, consulting and change for LeasePlan USA.

But whole segments of the macro-economy continue to be hobbled, specifically the aviation and vehicle rental companies, this paid off usage will put downward pressure on crude oil costs.

Wood -

Wood

“We expect oil markets to remain volatile as a result of slow economic recovery. Our company is still seeing constraints in travel from customers and many companies are keeping employees remote. This has generated a low demand in gas and certainly will continue in the event that pandemic worsens this cold temperatures,” said Lindsay Wood, product supervisor for Wheels.

Another good reason why it is hard to forecast fuel costs is because pricing dynamics in many cases are dictated at a much bigger geopolitical level.

Atchley -

Atchley

“Geopolitical tensions are low; but that could change quickly and adversely effect fuel supply and demand,” stated Mark Atchley, senior supply chain manager for Enterprise Fleet Management. “The Organization of the Petroleum Exporting Countries (OPEC) will likely continue attempts to sharply increase fuel expenses through production cuts. However, we expect fuel prices to keep experiencing modest growth in 2021 and stay below 2018 and 2019 amounts.”

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