So have you heard. The economy is better, therefore fuel prices are going higher. Oil rose to a fresh six month high above $60 a barrel on Tuesday as unrest in key producer Nigeria and a U.S. refinery outage kindled concerns over oil fundamentals after weeks of equity-led rallies.
Sure there are other things that are making gas prices higher and diesel fuel prices higher. Let’s take a look.
Key African and OPEC producer Nigeria has long suffered from losing part of its oil output and missing export obligations due to insecurity in the oil-rich Niger Delta.
Main militant group said on Monday it would blockade key waterways in the delta to try to prevent crude oil exports after days of military helicopter and gunboat raids on its camps. We were getting cheap gas or diesel fuel out of this area anyway because of the issues, now it’s going to help make the fuel prices jump up higher?
In the world’s top consumer United States, an explosion disrupted output at Sunoco’s refinery in Pennsylvania, pushing U.S. RBOB gasoline to a seven-month high ahead of the peak summer driving season. Yes, Sunoco which is only 25 miles away from Sokolis headquarters is a large producer of gas on the East Coast, so I could see a small spike maybe a couple of pennies a gallon of fuel.
The fact is gas prices are up 25 cents over the last 3 weeks before the issue at Sunoco. I still don’t believe that these prices are real. Short term no cheap gas, yes. Longer term, this price is peeling back a dime or two. Just my guess.
To keep up with the latest in fuel costs, fuel discounts turn to Sokolis a fuel management and fuel consulting company here to help you at www.sokolisgroup.com or 267-482-6155.
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