2015 is ending in a few months and economists are predicting price outlooks for the coming year. Gas and diesel prices are constantly being watched and energy economists sees continued fall in diesel prices through the year’s end.
Diesel prices have fallen 3 cents. Participating institutions and market players, such as trucking companies and refuelling specialists, like Mini-Tankers, are all sitting up to this news, managing the effect of the sharply lower future prices.
Further Cuts and More Drops
As of today, average diesel costs $17.79 per litre, which is less than petrol, after the market significantly cut costs last August. With that said, other fuel suppliers are announcing more drops in their prices to boost sales to holidaymakers planning to travel by car.
Further cuts are imminent if oil prices remain low and diesel production high from Saudi Arabia’s largest refineries. It seems the trend will hit not only New Zealand, America and Britain, but other countries worldwide, as well.
Despite the drop in commodity prices, in oil and fuel especially, they are still 33% higher than the oil market’s lowest point in January; only the New Zealand dollar has been falling for the last nine months, as well.
Why the Lag and the Drop?
According to market experts, the pace of economic growth of emerging markets, continuing supply growth, increase in global liquids inventories and the possibility of a spike in Iranian crude oil volume entering the market contributed to this price prediction.
The diesel market is apparently heading into its seasonal winter peak. With the combination of plentiful diesel supplies, weak crude oil prices and its increasing use for transportation and heat, the market is about to get cold and even colder as the year ends.
2016 will play witness to fuel prices dropping, and according to a few specialists, soaring later.