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August 4, 2010

Crude Rally Raises Pump Prices

 

The Associated Press reports that a market rally on crude oil has Americans paying more at the pump this week.

The national average for a gallon of regular unleaded rose 2.1 cents to $2.747 a gallon, according to AAA, Wright Express and Oil Price Information Service. Oil has traded above $82 for two straight days. It was around $77 a week ago.

Motorists are paying about 2.3 cents more than a month ago and 18.6 cents more than a year ago.

In addition to this rally, commercial oil reserves are steadily depleting. This will likely translate into higher gas prices at the pump throughout the summer. Naturally, this will add extra costs to fleet managers and the average consumer alike.

Filed under:Fleet Managers,Fuel Budget,Fuel Price Trends,Gas price | by Guy in a Suit @ 2:43 pm | 

July 8, 2010

Drilling Moratorium Back in Court

 

The Obama Administration will be pleading its case to the Fifth Circuit appeals court today at 3:00 PM local time. According to Reuters:

The drilling companies have the backing of key local leaders including Louisiana Republican Governor Bobby Jindal and Democratic Senator Mary Landrieu, who have argued the ban should be lifted in part because the drilling industry is worth $3 billion annually to the state’s economy.

The timing could not be much worse for the Gulf coast because the communities were just starting to get back on their feet after the devastating 2005 Hurricanes Katrina and Rita.

But the Obama administration has fired back that the ban was essential given the catastrophe unfolding, as millions of gallons (liters) of oil spew from the well. The administration also said the suspension was narrowly tailored and the Interior Department’s expertise should have carried more weight.

This means, of course, that the ruling we covered on June 23 may not hold up. The obvious consequence here: higher fuel prices for the consumer and tougher profit margins for fleet managers.

Filed under:Causes and Solutions,Fleet Managers,Fuel Budget,Fuel cost,Gas price | by Guy in a Suit @ 12:35 pm | 

June 21, 2010

Prices Headed Higher at the Pump

 

Kept down by the recent debt crisis in the European Union, prices at the pump here in the United States are forecasted to increase in the near future.

Prices rose 0.3 cent to a national average of $2.737 per gallon on Monday, according to AAA, Wright Express and Oil Price Information Service. Prices have risen 3.9 cents in the past week and are 7.5 cents below levels of a month ago. Pump prices are 4.4 cents higher than a year ago.

Oil prices continued to surge Monday, after China moved to end its two-year peg to the dollar. Crude rose $1.32 to $78.50 a barrel on the New York Mercantile Exchange. Traders anticipate a stronger yuan will make dollar-based commodities such as oil cheaper in China and bolster demand in the world’s second biggest market for oil. The policy shift also suggests China officials believe their economy is growing enough to absorb any slowdown in exports that a stronger currency may cause.

Of course, these moves will put additional financial strain on average consumers and fleet managers alike.

We will keep you informed as the EIA releases its next report on retail oil pricing next week.

Filed under:Fleet Managers,Fuel Budget,Fuel cost,Fuel Cost Control,Fuel Price Trends,Gas price | by Guy in a Suit @ 1:31 pm | 

June 17, 2010

Serious Impact from Drilling Moratorium

 

The Obama Administration has been taken to court over the president’s recently issued 6 month moratorium on offshore drilling in the Gulf of Mexico. The economic impact throughout the gulf region is rather obvious: thousands of oil workers now find themselves alongside shrimpers and hotel owners with their very livelihoods at stake. Considering peak oil nearly upon us, the countrywide implications will likely manifest themselves as higher fuel prices. Texas Senator John Cornyn (R) observes:

“Further hindering domestic energy production will lead directly to job losses, lost revenue, and higher fuel prices for all Americans.”

Filed under:Fleet Managers,Fuel Budget,Fuel cost,Fuel Cost Control,Gas price | by Guy in a Suit @ 3:46 pm | 

June 15, 2010

New Taxes Possible in Wake of Spill

 

Leaders from the major oil companies testified before Congress today in a hearing regarding the now infamous BP oil spill. With such intense media scrutiny after so long, the political will is building for increased regulation and possibly even new taxes for oil companies.

Markey called on Congress to pass several bills to ensure there is unlimited liability for spills by oil companies; to enact wide-ranging safety reforms for deepwater drilling; to charge oil companies to drill on public land (all five are drilling in the Gulf for free); and to move America to what Markey called “a safer, clean energy future so that we don’t have to rely as much on oil to power our cars and our economy.”

Any increased costs on oil companies operating in America – especially a tax – will certainly be passed on to the consumer at the pump. The need for fuel price protection steadily grows stronger.

Filed under:Fleet Managers,Fuel Budget,Fuel cost,Gas price | by Guy in a Suit @ 2:37 pm |