Summer Fuel Prices: The Latest News

What to expect this summer - will fuel prices go up?

Spring is almost here, but everyone is anticipating what will happen this summer in terms of fuel prices. Projections from experts abound on what to expect when it comes to vehicle gas prices, with much of the effect depending on the direction of the new Trump administration as it pertains to market dynamics. Here is an outlook from Alan Levine and Brian Milne on crude, gasoline, diesel (heating oil), propane and natural gas as reported by Fuel Marketer News (FMN).

Gasoline

This is one area where there's lots of supply yet weak demand. At the second highest on record, there's already too much gasoline flooding the market. In fact, retail prices are higher by 50 cents now than the same time last year. The summer should inject a bit of a boost into the economy, as employment is on the rise with more job gains happening.

Also, thanks to the Corporate Average Fuel Economy (CAFE) standards, mileage improvements are keeping excessive demand at bay. In Mexico, gasoline exports are on the rise, as their demand grows due to a stronger economy. Gasoline prices are expected to remain stable into the summer, when an increase is likely to occur. Average price of $2.39/gal in 2017 is expected.

Propane

Propane should lead exports, as it's a very strong product at the moment. If you're going to buy propane, now's the time to consider. Its cost is looking to be 10 to 12 cents cheaper in one year, as it emerges as an alternative fuel in industries like road construction and landscape work.

Crude

At between $50 and $55 per barrel at the moment, crude is experiencing an abundant supply not only in the United States but throughout the world too. Many factors may stabilize crude prices in the coming months, mainly OPEC's recent production cuts that are currently propping prices up.

Also on the rise are claims of high levels of compliance by overseas producers, mainly from Saudi Arabia, which says they would be open to deeper cuts in production if cheating increases yet again. As an aside, shale oil technology is an efficient form of fuel year over year, but it's still more expensive than conventional oil.

Natural Gas

Natural gas is increasing in demand, outpacing supply in Dec. 2016 for the first time in the U.S. Mild weather this winter is to blame, as is the impact of LNG exports on prices and demand of natural gas. The new trade policy of the Trump administration may continue to support this.

Diesel

Also known as a commercial fuel, diesel has been stable with high demand for distillates. The only area where this is not true is with No. 2 heating oil. Again, warmer-than-normal January and February temperatures are to blame. Distillate consumption was at the third-lowest level in the last 15 years.

If you have more questions about what fuel prices will look like this summer and all year round, contact Taylor Oil call today or visit: Fuel Marketer News (FMN)

Taylor Oil Company keeps America moving. The premier provider of on-site fueling services to construction crews, contractors, boats and marinas along the East Coast and beyond, Taylor Oil delivers the highest quality gasoline, diesel fuel and other petroleum products 24 hours a day, seven days a week. Our system is synchronized to your schedule, assuring your ability to keep machinery operating and projects profitable.


 By Vincent Gentile


Article Source: Summer Fuel Prices: The Latest News