Forecast of fuel costs in 2021

 - Photo: Skitterphoto

Photo: Skitterphoto

The price of gas is impacted by many factors making predictions hard. However, there are certain factors that are in play today, that allows us to extrapolate and extend those trend lines into the next calendar-year and interpret possible results.

Candib -

Candib

“With need nevertheless dramatically lower than historic averages and continued supply to hold right through to 2021, costs will continue to stay relatively flat through the sleep of 2020 and into 2021,” stated Emily Candib, manager – fleet products for Merchants Fleet. “Traditional demand expected to get in May-June and raise rates alongside stress on refineries to keep pace.”

The price of gas is very much indeed influenced by supply-and-demand characteristics, that are forecast to boost in CY-2021.

Dudeck -

Dudeck

“We anticipate you will see a gradual increase in gas price in 2021 as demand increases and production supplies are reduced to your new normal needs,” stated Justin Dudeck, item director, analytics, consulting and transformation for LeasePlan USA.

However, whole segments associated with macro-economy continue being hobbled, particularly the aviation and automobile leasing industries, this paid down usage will place downward force on crude oil rates.

Wood -

Wood

“We expect oil areas to remain volatile due to slow economic recovery. We’re nevertheless seeing constraints in travel from customers and lots of businesses are keeping workers remote. This has generated a decreased need in fuel and certainly will carry on in the event that pandemic worsens this cold weather,” stated Lindsay Wood, product supervisor for Wheels.

Another reasons why it is hard to forecast fuel prices is really because prices characteristics tend to be dictated at a bigger geopolitical level.

Atchley -

Atchley

“Geopolitical tensions are low; but that could alter quickly and negatively effect fuel supply and demand,” stated Mark Atchley, senior supply chain manager for Enterprise Fleet Management. “The Organization of this Petroleum Exporting Countries (OPEC) will probably continue attempts to sharply increase fuel prices through production cuts. But we anticipate fuel expenses to keep experiencing modest development in 2021 and remain below 2018 and 2019 amounts.”

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