Since most of the companies that read our newsletter care about diesel fuel prices that is where our focus is going to be. We will have so much focus we will all feel like Mr. Magoo. See when it comes to one of your largest expenses fleet fuel for your trucks, diesel fuel is has hard to predict as almost anything in 2012 Department of Energy national price was as low as $3.648 in July and went as high as $4.15 in October. That is a 51 cent swing per gallon for diesel fuel prices and if you looked at the whole years chart, it basically made that kind of swing twice.
The Department of Energy believes that the price of diesel fuel will average $3.84 a gallon in 2013, diesel fuel average $3.97 in 2012 but it was a ride as we all know. Their projections appear to be more subtle for 2013 and the movement not as great.
Almost all reporting agencies feel similar to the DOE. Maybe not the exact price but Bank of America, Morgan Stanley, International Energy Agency and OPEC to name a few don’t see anything materialist in the price of oil changing for the year. With that said, 2012 diesel fuel started at $3.78 a gallon and end at $3.91 a gallon, only a 13 cent spread but we know in between it was a wild ride.
If we can take away all of the regular uncertainty around crude oil prices and diesel fuel prices, I believe China is still what will drive the market one way or another. The Great Recession we had some of the highest gas prices and diesel fuel prices ever, maybe that help tipped us into the recession. One thing for sure, we weren’t driving the oil market growth but China was as it prepared for the Olympics and its normal 10% growth. As China goes so does the price of diesel fuel into your fleet? Need help, go here.
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