Lock In Savings with Fuel Contracting Options & Bonus Market Insights
Oct 18, 2024
By Michael Nigro, Energy Risk & Pricing Analyst
GCC Fuel Contracting
GCC has been a long-time provider of fuel contracting and continues to strive to bring different options and competitive pricing to assist our customers with their fuel needs. We have flexibility with volume and timeframe. Whether it’s supply at the Scott City terminal or storing actual physical gallons in our bulk tanks for delivery in the future, we’re happy to outline how contracting might benefit you.
Market News & Data
Year to date, as of the end of September, diesel fuel prices in Scott City have fluctuated within a 90-cent range, with the lowest point in mid-September and the highest in early February. During this time, crude oil prices have varied between $65 and nearly $87 per barrel. In comparison, 2023 saw a broader price range of about $1.30 for local diesel, while 2022 experienced a much larger swing of $2.60, with delivered prices surpassing $4.00 per gallon multiple times. Much of this year’s energy pricing has been weak partly due to global economic slowdown and high inflation leading to low demand numbers and future forecasts. We’re now in price points that we haven’t seen since late 2021. A natural question that comes to mind is will it move lower or creep back up on us and is it a good time to contract and lock in fixed fuel prices?
OPEC+ forecasts crude demand to increase sometime in 2025 and is also forecasting global demand to continue to rise as far out as 2050. One market outlook right now is that despite the weak position energy is in this year, there are a number of factors indicating that at some point we will see prices move back up. At the time of this writing, these are some of the points analysts are watching:
A Look at Real Numbers
On September 25:
Fieldmaster Premium Diesel delivered to the Garden City area was in the range of $2.49 per gallon (daily spot price delivery from Scott City terminal).
A Jan 2025 – Sep 2025 Fieldmaster contract was around $2.54 per gallon. (single load pull anytime between Jan to Sep delivered price from Scott City terminal).
If you’re interested in finding out more about contract opportunities, current prices and/or receiving regular petroleum market updates please let us know!
GCC Fuel Contracting
GCC has been a long-time provider of fuel contracting and continues to strive to bring different options and competitive pricing to assist our customers with their fuel needs. We have flexibility with volume and timeframe. Whether it’s supply at the Scott City terminal or storing actual physical gallons in our bulk tanks for delivery in the future, we’re happy to outline how contracting might benefit you.
Market News & Data
Year to date, as of the end of September, diesel fuel prices in Scott City have fluctuated within a 90-cent range, with the lowest point in mid-September and the highest in early February. During this time, crude oil prices have varied between $65 and nearly $87 per barrel. In comparison, 2023 saw a broader price range of about $1.30 for local diesel, while 2022 experienced a much larger swing of $2.60, with delivered prices surpassing $4.00 per gallon multiple times. Much of this year’s energy pricing has been weak partly due to global economic slowdown and high inflation leading to low demand numbers and future forecasts. We’re now in price points that we haven’t seen since late 2021. A natural question that comes to mind is will it move lower or creep back up on us and is it a good time to contract and lock in fixed fuel prices?
OPEC+ forecasts crude demand to increase sometime in 2025 and is also forecasting global demand to continue to rise as far out as 2050. One market outlook right now is that despite the weak position energy is in this year, there are a number of factors indicating that at some point we will see prices move back up. At the time of this writing, these are some of the points analysts are watching:
- US election year volatility and inflation (Trump victory, oil prices down / Harris victory, oil prices up)
- China’s economy (stagnate economic conditions and slow growth continue, oil prices down / signs of economic recovery, oil prices up)
- Israel and Hamas conflict
- Russia and Ukraine conflict
- Hurricane season and its impact on refineries
- Refiners cutting back due to lowering margins
A Look at Real Numbers
On September 25:
Fieldmaster Premium Diesel delivered to the Garden City area was in the range of $2.49 per gallon (daily spot price delivery from Scott City terminal).
A Jan 2025 – Sep 2025 Fieldmaster contract was around $2.54 per gallon. (single load pull anytime between Jan to Sep delivered price from Scott City terminal).
If you’re interested in finding out more about contract opportunities, current prices and/or receiving regular petroleum market updates please let us know!