As many of us are focused on our plans for the Thanksgiving holiday, we need to be aware of market-moving headlines in December that could create a volatile price market – similar to last year. Let’s review some of the events which could present an opportunity to take advantage of market movement and protect your fuel budgets.
The Midwest continues to see the effects from the recent month of March floods and is causing ethanol to be near its highest basis level since 2014. While prices go up and barrels are trapped in the country’s interior, it’s causing the U.S. coasts to suffer from a biofuel shortage.
On December 26th NYMEX low traded at $1.6205 per gallon. Since then, the price has moved higher to $0.27 per gallon moving ever closer to the $2.00 mark.
This week the U.S. was not only faced with a polar vortex but the price of oil is on track for short-term gains with a possible spike in prices we saw last November. There are a few contributing factors to the recent boost that are highlighted below.
With constant fluctuations in price, fleet owners are becoming much more conscious of their fueling spend. Some may shop around to find more cost effective supply options, while others are looking at newer technologies to increase fuel efficiencies. Most of us have seen smart phone applications for everything it seems, but now trucking companies are more regularly looking into newer apps as a fuel optimization solution. Two companies in particular are setting the standard for over the road truckers in this category.