Oil prices fell sharply Wednesday along with diesel fuel prices (heating oil) as the euro dropped to an 11-month low and fears of European debt contagion sent jitters through the marketplace. Heating oil settled .0989 lower which diesel fuel prices mimic and crude 5.19 lower (94.95) after worries were reinforced that the European debt crisis could trigger a broader recession in Europe which could impact global oil demand.
Fresh concerns over oil demand collided with OPEC’s decision to hold output at its current 30 million bpd level. The OPEC agreement did not include individual quotas, effectively legitimizing current freewheeling production. Selling gathered more momentum after the DOE inventory update reported crude stocks fell less than expected and gasoline stocks increased more than twice predictions. This is why we continue to see lower gas prices across the country. Diesel fuel prices remain high because of exports out to other countries. DOE also said overall oil demand lags last year by the biggest level in two-and-a-half years.
This lag in demand could spell good news in the next few weeks when you our fleet fueling using your fuel card. We all like to pay lower diesel fuel prices and gas prices especially a good fleet manager. The additional fuel savings that could happen will make a fuel management company like ours over the holiday.
Sokolis Group wishes you a happy holiday season, improvement fuel management if you use our services and a gift under the tree.