Oils Well That Ends Well

As Fuel flows out of the year into a new year, what a crazy year it has been. Fuel costs shooting through the roof then dropping like a brick. (See Graph below of the last 2 years). What will fuel costs bring next year, is anyones guess. The educated side of us, says that it will remain flat throughout the year just as the economy probably will. Not even hurricanes Gustav and Ike in the Gulf of Mexico in September or the Middle East conflict between Israel and Hamas has been able to stop crude's slide. A sign that the economy has a very strong hold on oil prices.

DOE stats just released aren't regarded as "market moving" with small builds in crude oil and refined products offset partially by a dip in refinery output. Not much to talk about, fuel costs as the year fades away.

Gasoline prices have been more than halved from summer peaks above $4, giving consumers some relief even as millions of people lose jobs and companies freeze hiring. Not even gas prices of $1.35 per gallon in some parts of the country have been enough to spur demand as Americans ride out what could become the worst economic downturn since World War II.

Let's hope next year brings a turn in the economy but without a lot of increased fuel costs. We can all bank some money because this year has been a real blood bath.

HAPPY NEW YEAR. 2009 FUELER UP!

Fuel Costs Falling

Prices had jumped as much as 12 percent on Monday after Israel launched its fiercest air offensive in the Hamas-ruled Gaza strip in decades. Hamas sent missiles deep into Israel on Monday, three days into Israel's punishing air offensive in Gaza. Four Israelis, including a soldier, were killed and eight wounded. Palestinian health officials put the three-day death toll in Gaza at 364; the U.N. said the total included at least 62 civilians.
Early Tuesday, Israeli aircraft dropped at least 16 bombs on five Hamas government buildings in a Gaza City complex, destroying them, witnesses said. Israel's defense minister Ehud Barak promised a "war to the bitter end against Hamas" and allied militants.

Oil fell below $39 a barrel on Tuesday, pressured by gloom about prospects for world economic growth which outweighed heightened tensions in the Middle East due to the Israeli-Hamas conflict.

"With most global economies struggling and credit markets still in an impaired state, it is hard to get too excited about the upside potential in energy markets attributable solely to geopolitical factors unless, of course, these are directed at the heart of the oil supply system," said Edward Meir, fuel blipped upward over the past few days because of the fighting. But with the conflict in its fourth day Tuesday, the fuel market refocused on the turmoil roiling economies internationally -- and the negative fallout for oil demand.

Tomorrow's fuel inventory numbers will start to gain more attention from traders as well. Market expectations call for slight builds/increases in product stocks and refinery utilization with a slight decline in crude stocks. In a slow week of fuel trading, fuel costs will rest in inventory numbers.

Fuel Prices Raise

With Christmas over those on Wall Street need something to get their week jumped started before the New Year.

Israeli air strikes in the Gaza strip have helped replace concerns about flagging demand with fears about a potential supply disruption. Bolstered by U.S. dollar weakness and heightened tensions in the Middle East, the NYMEX futures complex kicked off today's session with across-the-board gains.

It's early in the day so fuel prices could easily come down as they have gone up earlier today. We will see how the rest of the trading day goes to see if we will lower fuel costs.

Fuel Raises but not for long

Oil prices increased today and low demand after the holiday. Fuel prices will probably go lower next week based on week demand numbers reported by the EIA.

Lower fuel prices have provided the country with an economic stimulus package of around a billion dollars a day since July when fuel prices hit record highs. Who's doesn't like having that extra money in their pocket after the fill up.

OPEC next meeting is planned for January 19 in Kuwait City where we believe they will announce further cuts in oil production. As fuel costs go lower, OPEC nations are not exactly happy. Better our pockets than theirs.

Fuel Costs

Santa brings $35.35 crude oil prices for Christmas. As oil costs fall for 9 consecutive days. Most oil investors feel that prices will continue to fall into the new year. Lower fuel prices mean a nice Christmas present and a Happy New Year to almost everyone except oil companies.

Most including us believe it just a matter of time before we see twenty something dollars a barrel. Sokolis Group has felt fuel prices would fall to that level since it broke the fifty dollar a barrel level.

Inventories raise and oil prices fall. Fuel costs to trucking companies and everyone else improve daily. Let us know how low you think fuel costs will go? How much does lower fuel costs help your companies fleet. What are you doing to help manage those fuel costs?

Fuel Savings

Many companies are saving money on their fuel cost not only the fuels have come down but they have taken action to improve fuel saving.

• Lower driving speeds
• Improved tire care
• Reduction in idle time
• Better driver education about how to drive

With these simple fuel savings tips, companies improve their bottom line in very difficult times.

Take control of your fuel cost and save money.

How does your company save money on fuel? We would like to here.

Fuel Prices

Yes, we head into the biggest holiday of the year and the economy is bad. Real bad. Not a day goes by that you don't read about this company laying off 1,000 people or that company laying 5,000 people. Toyota for the first time in its 70 year history is reporting an operating loss.

The good news is we are only paying $1.50 -$1.80 a gallon for gas nationwide and diesel is another 50-75 cents more expensive. Could you imagine what it would be like for you or your company today if you had to fill up and it was $4.059 a gallon for gas or $5.10 a gallon for diesel. Life would be that much worse.

This blog is set up to help provide fuel advice on buying fueling, fuel questions and other fuel related questions. Its mainly for businesses that have fleets of trucks but we will try and field all questions.