• Set Air Conditioning at your office or home at 78 or higher, when not in the building make sure it gets turned up.
• At highway speed ride with your windows closed and AC on, your vehicle will actually burn less fuel because its more aerodynamic.
• Turn those lights off and use the extra hours of sunlight to lower your electric bill.
• No idling, cars or trucks; some companies are smart and have put idling devices in their trucks others have not and are paying a larger price in the long run.  How many times do you see a person let their car idle to cool it down? It's a waste.
• Slow down, you will get where you are going and save money doing so.
• If you're using a gas or propane grill, use it then turn it off.  Why use the extra energy.

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Oil Prediction
Gas and Diesel Fuel Prices need Fuel Management  

After a wacky first half of the fuel year, we decided to turn to fuel analysts for their second half of 2009 predictions.  You know these people; they are like your local weather person, right 15% of the time and still have a job. 
 
One thing we predict for the second half is expect the unexpected during the next six months.  Yes, the King of Pop might be dead but the Kings, Sheiks & Dictators of OPEC are still alive and want to do everything they can to make their fuel money. 
 
What are the analysts saying for the near and longer term future when it comes to gas and diesel fuel.  Good luck, based upon the wide projections from the experts in their industry.  Clearly, whatever happens to the overall cost of fuel your company needs to be in a position of control and understanding?
 
Royal Bank of Scotland believe that from our current levels for crude oil they believe $56 is coming soon and will be the target price for fuel in all 2010. 
 
OPEC President Angola said the group's goal is still $75 for a barrel of oil.  Yet we have OPEC producing 6 million barrels per day in spare capacity (42 gallons to the barrel).  Storage levels are almost as high as the tanks they are in so what is going to drive the price. 
 
Goldman Sachs believes supply and demand fundamentals will continue to improve in 2009, driving fuel prices higher.  So high that they predict fuel to be at $90.20 a barrel for all 2010.  Others clearly say it will be $85 a barrel by the end of the year. 
 
Remember a barrel of oilhas a direct impact on the cost of gas and diesel fuel.  At something a little over $70 for a period of time, we are talking about $3 gas and similar diesel fuel prices. 
 
With all of the fuel talk about fundamentals in the market, oil demand from emerging markets, a weak US dollar so oil is a safe hedge in world currency, it all really boils down to 3 things. 

• Supply & Demand, this comes in the book of Economics 101, if your demand is greater than your supply, prices rise.  If your supply is greater the demand prices fall.
• Through all of the predictions from all of these analysts, forecast out as far as 2011 and the price will be $79.65 for a barrel of oil.  (Let me be a weather man for a moment and say July 7, 2011 will be 82 F and overcast in Chicago.)  The consensus is $56.59 for the rest of this year and $70.35 for 2010.  That should be able to make you relax a little, right?
• Don't relax.  Fuel prices are fairly low and sure they were lower 7 months ago.  How does your company control its fuel cost? Do you know if you're being charged the correct pricing?  Are your drivers told where to fuel or do you let them decide where to spend your money?  Do you audit your invoice and receipts; of course no one would want to take advantage of you in the worst economy since the Great Depression.  Wake up, non client!  Click Here, see what Sokolis Group can do for you or give us a call at 267-482-6155. 

Don't think the problems are going to fix themselves and stop putting off what we can do for you today for tomorrow, which just adds another day of overspending. 

Drive Safely and Enjoy the Summer Time weather. 

 

Peter L. Peirce, Manager, Fleet Services
AAA Northern California, Nevada & Utah
600 plus vehicles