What you need to know
- There’s a high demand of fuel: You can expect fuel prices to rise every spring. This is because people in the US are traveling more. Overall, AAA estimated that 41.5 million Americans traveled by car, planes, trains, buses and cruise ships over Memorial Day weekend, the highest since 2005.
- Crude oil pricing: Brent crude, the global benchmark that tends to influence US fuel prices, recently topped $80 a barrel. It's up about 50% over the past year.
- OPEC and Russia: This coalition has tried to limit production, in an effort to reduce the worldwide glut of oil and support price
- President Trump exits Iran deal: US oil prices topped $70 a barrel earlier this month, just as the President announced the United States is withdrawing from the Iran nuclear deal.
The big picture
Global oil supplies were already getting tight before Trump vowed to exit the Iran nuclear deal and impose "powerful" sanctions on the OPEC nation. Energy industry insiders say Trump's tough stance on Iran will probably keep oil and gasoline prices higher than they would be otherwise.
Regarding the potential loss of Iranian oil, Saudi Arabia has vowed to fill the void. But analysts predict that would set up a major contest among other producers who have agreed to dial back production to reduce oversupply in support of price, Russia being one of the producers likely to lead that charge.
In fact, Saudi Arabia said last week that OPEC and Russia could supply more oil to world markets "in the near future."
However, some analysts are skeptical that OPEC and Russia will do anything to spoil the high prices needed to balance their budgets, according to CNNMoney.
What can we expect?
Although no one knows for sure, if recent history is any guide, U.S. shale producers are likely to increase production in a more financially responsible manner, and offset any reductions coming from Venezuela and or Iran.
What can we do about it in the meantime?
There are several factors affecting fuel prices. The most immediate thing we can do is reduce our fuel usage either through driving less or increasing efficiency. An excellent way to increase fuel efficiency is to take care of your tires and keep them properly inflated.
If you own a fleet operating business, driving less is definitely not an option; but you can increase the efficiency of your budget and protect your company by making cost-effective decisions, such as fueling at stations that offer you a better price by the gallon.
energie·fuel respects your business and budget. That’s why we are always available to help you find the best fuel prices near you and provide you with the necessary tools to keep track of your gallon usage and overall fuel expenses. There truly is power in numbers, and when you fuel with our national network, rest assured, you will see a reduction on your costs.
If you want to make the most of your membership, please contact us firstname.lastname@example.org or 833·TRU· NRGY