It looks like fleet fueling prices might stay stable? Well it will be hard to determine if diesel fuel prices will increase of if gas prices will go higher at this point. Thought OPEC agreed to keep crude output at a daily 30 million barrels Wednesday but left it up to its 12 members to voluntarily honor that ceiling without overshooting it, reflecting their differences over prices and output.
Ahead of Wednesday’s talks, Iran had sought lower production for the cartel, which would raise oil prices. Anytime Iran can stick it to the U.S. by making diesel fuel prices and gas prices higher they try and do so. But they apparently bowed to Saudi Arabia which wanted to maintain levels and which effectively sets OPEC policy as its largest producer. This helps all each fleet manager control his fleet fueling budget for now.
Despite the compromise, Saudi-Iranian tensions overshadowed much of the meeting.
The OPEC statement said the target includes Libya, which is increasing production after its civil war ended. Libyan delegates say the country is pumping about 1 million barrels a day and plans to be up to pre-civil war levels of around 1.6 million barrels a day within six months. The price of oil is right around $100, how much more of our money these countries need. We have high diesel fuel prices because we get their crude oil, refine it in our country and send it back to them as diesel fuel, which increases our diesel fuel prices here. If you’re talking about fuel management that is a tricky one.
Oil prices dropped Wednesday — apparently less as a reaction to the widely expected deal and more due to continued concerns about the debt crisis.
Benchmark crude fell $4.30, or 4.4%, to $95.84 per barrel in trading. Prices haven’t been that low since Nov. 25.
The statement from the Organization of the Petroleum Exporting Countries said members had agreed to voluntarily lower production “to ensure market balance and reasonable prices,” should future world supply exceed demand.
Gain instant access to the ebook!