We have a fuel surplus of 45 million barrel. That’s a lot of fuel oil. Economic data released Wednesday showed wholesalers cut their inventories in February by the steepest amount in more than 17 years as companies struggle to reduce stockpiles amid slowing sales. The Commerce Department said wholesale inventories dropped 1.5%, the most on record dating back to January 1992 and more than double analysts’ expectations.
What gives? More fuel, higher fuel cost at the pump, less fleet transportation, less mileage being driven by car and bad economic data results with increase crude oil prices. Unfortunately, this market has a knack for ignoring fundamentals.
With refiners holding back production and some unexpected refinery outages the bullish market has driven up fuel prices over this past week.
At Sokolis and with a lot of other fuel management companies we all believe that the market will continue around the $50 a barrel market. The fundamentals of the fuel markets say it can’t go higher but could it? Sure. It’s Oil, anything can happen.
Sokolis is a nationwide outsource fuel management and fuel consulting company. We assist our fleet clients in buying fuel and managing their fuel supply chain on a daily basis. For more information contact www.sokolisgroup.com or 267-482-6155. Get control of your fuel purchasing today.
Gain instant access to the ebook!