The price tag on gas is influenced by many variables making predictions difficult. But there are specific factors which are in play today, which allows united states to extrapolate and expand those trend lines to the next calendar-year and interpret possible results.
“With demand still notably less than historical averages and proceeded supply to carry right through to 2021, rates will continue to remain reasonably flat through the entire remainder of 2020 and into 2021,” said Emily Candib, manager – fleet services and products for Merchants Fleet. “Traditional need anticipated to get in May-June and raise prices along with stress on refineries to help keep speed.”
The price tag on gas is very much indeed affected by supply-and-demand dynamics, which are forecast to boost in CY-2021.
“We anticipate you will have a gradual increase in fuel expense in 2021 as need increases and production materials are paid off to the new normal needs,” stated Justin Dudeck, item manager, analytics, consulting and change for LeasePlan United States Of America.
But entire portions associated with macro-economy continue to be hobbled, specifically the aviation and automobile leasing companies, this paid off usage will place downward force on crude oil prices.
“We expect oil markets to stay volatile considering slow financial recovery. We are still seeing constraints in travel from customers and lots of businesses are keeping workers remote. It has led to a reduced need in fuel and certainly will continue if the pandemic worsens this wintertime,” said Lindsay Wood, product supervisor for Wheels.
Another reason why it is difficult to forecast fuel prices is because prices dynamics tend to be dictated at a much larger geopolitical level.
“Geopolitical tensions are currently low; however, that may change quickly and negatively effect gas supply and demand,” said Mark Atchley, senior supply string supervisor for Enterprise Fleet Management. “The Organization of the Petroleum Exporting Countries (OPEC) will probably carry on tries to sharply increase fuel costs through manufacturing cuts. However, we anticipate fuel prices to continue experiencing modest growth in 2021 and stay below 2018 and 2019 amounts.”