Forecast of fuel costs in 2021

 - Photo: Skitterphoto

Picture: Skitterphoto

The price of fuel is influenced by many factors making predictions difficult. But there are particular variables that are in play today, allowing us to extrapolate and expand those trend lines into the next calendar-year and interpret possible results.

Candib -

Candib

“With demand still notably lower than historical averages and continued supply to hold right through to 2021, costs continues to remain relatively flat through the remainder of 2020 and into 2021,” said Emily Candib, director – fleet products for Merchants Fleet. “Traditional need expected to pick up in May-June and raise rates alongside pressure on refineries to keep rate.”

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

However, entire sections of the macro-economy keep on being hobbled, in particular the aviation and automobile leasing companies, this reduced consumption will place downward force on crude oil rates.

Wood -

Wood

“We anticipate oil markets to keep volatile as a result of slow financial recovery. We are nevertheless seeing constraints in travel from consumers and lots of businesses are maintaining employees remote. This has led to a reduced demand in gas and can carry on if the pandemic worsens this winter,” said Lindsay Wood, product supervisor for Wheels.

Another good reason why it is hard to forecast fuel expenses is basically because prices dynamics tend to be dictated at a much bigger geopolitical level.

Atchley -

Atchley

“Geopolitical tensions are low; however, that may change quickly and negatively impact fuel supply and demand,” said Mark Atchley, senior supply chain manager for Enterprise Fleet Management. “The Organization of Petroleum Exporting Countries (OPEC) will probably continue attempts to sharply increase fuel prices through manufacturing cuts. But we expect fuel costs to keep experiencing modest development in 2021 and stay below 2018 and 2019 amounts.”

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