Sunset’s VP, Strategic Accounts Jill Gross talks fuel price trends and what to expect this summer as diesel prices increase.
Following the initial impact from COVID in 2020, OPEC and oil producing nations cut production by roughly 10% of the global supply. As the economy recovered throughout 2021, oil producers have not been able to ramp up production quickly enough to meet demand. Additionally, diesel prices have increased over one dollar as a result of the Russian invasion of Ukraine as of January 31, 2022.
“Although the U.S. only gets about 2% of it’s oil and petroleum supply from Russia, the surge in prices is due to the larger global oil market. When the U.S. imposes sanctions, this has wider ramifications on the ability of Russia to export oil, which makes it more difficult to flow to the global market, and prices are reacting to that,” Gross says.
Sunset experts expect fuel prices to remain elevated, especially as we move into the summer months when demand is typically higher due to elevated personal travel and construction projects.
Email JGross@SunsetTrans.com for an analysis on how your fuel expense has changed based on today’s fuel prices, and learn more about how fuel expense will directly impact your spending on freight.