The buying price of fuel is impacted by many factors making predictions hard. However, there are certain variables which are in play today, which allows us to extrapolate and expand those trend lines to the next calendar-year and interpret feasible results.
“With demand still considerably below historic averages and continued supply to transport to 2021, prices will continue to stay reasonably flat through the rest of 2020 and into 2021,” stated Emily Candib, manager – fleet services and products for Merchants Fleet. “Traditional need anticipated to get in May-June and raise costs along side pressure on refineries to keep pace.”
The price tag on fuel is very much affected by supply-and-demand characteristics, that are forecast to boost in CY-2021.
“We anticipate you will see a gradual increase in fuel cost in 2021 as demand increases and manufacturing supplies are paid off towards the brand new normal demands,” stated Justin Dudeck, product manager, analytics, consulting and transformation for LeasePlan United States Of America.
But whole sections associated with macro-economy are hobbled, in particular the aviation and car rental industries, this paid down usage will place downward force on crude oil costs.
“We anticipate oil markets to stay volatile considering slow economic recovery. Our company is still seeing constraints in travel from consumers and several companies are maintaining employees remote. It has generated a decreased need in fuel and can continue in the event that pandemic worsens this winter,” stated Lindsay Wood, product manager for Wheels.
Another reasons why it is difficult to forecast fuel prices is basically because rates characteristics are often dictated at a much larger geopolitical level.
“Geopolitical tensions are currently low; but that could change quickly and adversely effect gas supply and need,” said Mark Atchley, senior supply chain supervisor for Enterprise Fleet Management. “The Organization of this Petroleum Exporting Countries (OPEC) will likely carry on attempts to sharply increase fuel costs through production cuts. However, we anticipate fuel costs to continue experiencing modest growth in 2021 and stay below 2018 and 2019 amounts.”