Forecast of fuel costs in 2021

 - Photo: Skitterphoto

Photo: Skitterphoto

The price of gas is impacted by numerous variables making predictions difficult. However, there are particular variables which are in play today, makes it possible for united states to extrapolate and expand those trend lines to the next calendar-year and interpret possible results.

Candib -

Candib

“With demand nevertheless dramatically less than historical averages and continued supply to transport right through to 2021, prices will continue to stay fairly flat through the entire sleep of 2020 and into 2021,” said Emily Candib, manager – fleet items for Merchants Fleet. “Traditional demand anticipated to grab in May-June and raise prices alongside force on refineries to help keep rate.”

The cost of fuel is very much indeed influenced by supply-and-demand dynamics, which are forecast to boost in CY-2021.

However, entire sections of the macro-economy remain hobbled, specifically the aviation and vehicle rental industries, this paid down usage will put downward force on crude oil costs.

Wood -

Wood

“We anticipate oil areas to remain volatile due to slow financial recovery. We’re still seeing constraints in travel from consumers and several companies are keeping employees remote. It has led to a reduced demand in fuel and can continue in the event that pandemic worsens this cold weather,” said Lindsay Wood, product supervisor for Wheels.

Another reason why it is difficult to forecast fuel prices is because rates dynamics are often dictated at a much bigger geopolitical level.

Atchley -

Atchley

“Geopolitical tensions are low; but that could alter quickly and negatively impact gas supply and need,” stated Mark Atchley, senior supply string supervisor for Enterprise Fleet Management. “The Organization regarding the Petroleum Exporting nations (OPEC) will probably continue tries to sharply increase fuel prices through production cuts. However, we anticipate fuel prices to carry on experiencing modest development in 2021 and remain below 2018 and 2019 amounts.”

Latest posts