Forecast of Fuel Prices in 2021

 - Photo: Skitterphoto

Photo: Skitterphoto

The price of gas is influenced by many factors making predictions hard. But there are specific factors that are in play today, allowing us to extrapolate and extend those trend lines in to the next calendar-year and interpret possible results.

Candib -

Candib

“With need still somewhat less than historic averages and proceeded supply to hold through to 2021, rates continues to stay reasonably flat through the sleep of 2020 and into 2021,” said Emily Candib, manager – fleet items for Merchants Fleet. “Traditional demand anticipated to get in May-June and raise costs and stress on refineries to help keep pace.”

The cost of fuel is certainly much influenced by supply-and-demand dynamics, that are forecast to improve in CY-2021.

Dudeck -

Dudeck

“We anticipate you will see a gradual rise in fuel price in 2021 as need increases and manufacturing materials are paid down to your brand new normal needs,” said Justin Dudeck, item director, analytics, consulting and transformation for LeasePlan USA.

But whole sections for the macro-economy are hobbled, in particular the aviation and car rental companies, this paid off usage will put downward stress on crude oil rates.

Wood -

Wood

“We expect oil areas to keep volatile due to slow financial data recovery. We are nevertheless seeing constraints in travel from customers and lots of companies are keeping workers remote. This has generated a low need in fuel and can carry on if the pandemic worsens this wintertime,” stated Lindsay Wood, item manager for Wheels.

Another good reason why it is hard to forecast fuel costs is because rates characteristics tend to be dictated at a bigger geopolitical level.

Atchley -

Atchley

“Geopolitical tensions are currently low; but that could change quickly and adversely impact fuel supply and need,” said Mark Atchley, senior supply chain supervisor for Enterprise Fleet Management. “The Organization associated with Petroleum Exporting Countries (OPEC) will more than likely continue attempts to sharply increase fuel prices through manufacturing cuts. However, we expect fuel expenses to keep experiencing modest development in 2021 and stay below 2018 and 2019 amounts.”

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