Forecast of Fuel Prices in 2021

 - Picture: Skitterphoto

Photo: Skitterphoto

The price of gas is impacted by many factors making predictions hard. However, there are particular variables that are in play today, makes it possible for us to extrapolate and expand those trend lines to the next calendar-year and interpret feasible outcomes.

Candib -

Candib

“With need nevertheless dramatically below historical averages and proceeded supply to carry to 2021, rates continues to remain reasonably flat through the entire remainder of 2020 and into 2021,” said Emily Candib, director – fleet products for Merchants Fleet. “Traditional demand expected to get in May-June and raise prices alongside pressure on refineries to help keep rate.”

The buying price of gas is very much affected by supply-and-demand characteristics, which are forecast to improve in CY-2021.

Dudeck -

Dudeck

“We anticipate there will be a gradual increase in fuel expense in 2021 as demand increases and manufacturing materials are reduced toward brand new normal demands,” stated Justin Dudeck, item director, analytics, consulting and change for LeasePlan USA.

But entire segments associated with macro-economy continue being hobbled, particularly the aviation and automobile leasing companies, this paid off consumption will put downward stress on crude oil rates.

Wood -

Wood

“We expect oil markets to keep volatile considering slow financial recovery. We have been still seeing constraints in travel from customers and many businesses are maintaining workers remote. This has led to a low need in gas and certainly will carry on in the event that pandemic worsens this winter,” said Lindsay Wood, item supervisor for Wheels.

Another good reason why it is difficult to forecast fuel prices is basically because prices characteristics are often dictated at a much bigger geopolitical degree.

Atchley -

Atchley

“Geopolitical tensions are low; however, which could alter quickly and negatively impact fuel supply and need,” stated Mark Atchley, senior supply chain supervisor for Enterprise Fleet Management. “The Organization of the Petroleum Exporting Countries (OPEC) will more than likely carry on attempts to sharply increase fuel costs through production cuts. But we expect fuel prices to carry on experiencing modest growth in 2021 and remain below 2018 and 2019 levels.”

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