Let’s Swin In Fleet Fuel and Gas Prices

There is a whole lot of fleet fuel and gas in the market place. This will make fuel planning a little easier. Based on the DOE update, crude stocks are now some 38 million bbls, or 11%, above year-ago levels and are “above the upper boundary of the average range for this time of year,” according to DOE. With your fuel management program this is a good thing as long as you know what you’re looking for.

The gas draw was slightly larger than expected and left stocks 12.6 million bbls above last year’s level and 9.2 million bbls above the five-year average. Gas demand numbers were uninspiring, dropping 100,000 bpd. Just before the release of the DOE data, a warning about upcoming gasoline consumption came from the American Automobile Association (a client of ours) which predicted that there could be a 13% drop in Labor Day weekend driving this year. Based on a four-week average, gasoline demand is off .3% from last year. Where are most people going to go? This economy still does have people doing back flips so instead they will stay home and invite neighbors over and flip burgers and hot dogs.

Breaking down the distillate data, low sulphur diesel was .600 million bbls lower, heating oil increased 1.1 million bbls while ultra low sulphur stocks increased .300 million bbls. This is good news for your fuel management program. We know that when we usually have too much of something we sell it for a lower price. Here is to fleet fuel prices coming down, as this fuel consultant believes they will. Total distillate stocks are now 30.3 million bbls above last year’s level for this time of year and 30.6 million bbls above the five-year average. Distillate demand fell slightly and on a four-week average is down 7.9% from last year.

The fleet fuel business is always exciting. Most of the world does not have the time or resources to really get a full take of it. Let your fuel management team at Sokolis help you get your fuel planning, fuel program in the right direction with our staff of fuel experts & fuel consultants.