Forecast of fuel costs in 2021

 - Photo: Skitterphoto

Picture: Skitterphoto

The price tag on fuel is relying on numerous variables making predictions difficult. However, there are certain factors being in play today, that allows united states to extrapolate and expand those trend lines to the next calendar-year and interpret possible results.

Candib -

Candib

“With demand still somewhat below historical averages and proceeded supply to carry right through to 2021, rates will continue to remain relatively flat through the entire sleep of 2020 and into 2021,” stated Emily Candib, manager – fleet products for Merchants Fleet. “Traditional demand likely to pick up in May-June and raise rates along with force on refineries to help keep speed.”

The price tag on gas is certainly much impacted by supply-and-demand dynamics, which are forecast to boost in CY-2021.

But entire sections associated with macro-economy remain hobbled, in particular the aviation and vehicle leasing companies, this paid down usage will place downward stress on crude oil rates.

Wood -

Wood

“We anticipate oil areas to remain volatile as a result of slow economic data recovery. We’re still seeing constraints in travel from consumers and lots of businesses are keeping workers remote. It’s resulted in a low need in fuel and can continue in the event that pandemic worsens this wintertime,” stated Lindsay Wood, product manager for Wheels.

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

Atchley -

Atchley

“Geopolitical tensions are currently low; however, that could alter quickly and negatively impact fuel supply and demand,” stated Mark Atchley, senior supply chain supervisor for Enterprise Fleet Management. “The Organization associated with the Petroleum Exporting Countries (OPEC) will likely continue tries to sharply increase fuel costs through manufacturing cuts. But we expect fuel costs to keep experiencing modest growth in 2021 and stay below 2018 and 2019 levels.”

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