Bearish Trends Persist – Lock in a Fixed Fuel Price While You Can

Fuel markets remain under pressure as concerns over demand, rising debt, and broader economic instability continue to weigh on prices. With uncertainty surrounding U.S. tariffs, oil prices have experienced multiple weeks of declines, and the bearish trend is expected to persist in the near term.

Oil prices saw a modest increase on Tuesday, rising 1% as the U.S. dollar weakened, making oil more affordable for international buyers. Brent crude climbed by 81 cents (1.05%) to $70/bbl, while WTI rose 79 cents to $66.82/bbl. However, this uptick was tempered by growing fears of an economic slowdown in the U.S. and the impact of trade tariffs on global markets.

U.S. trade policies continue to be top of mind in geopolitics. Over the weekend, President Trump hinted at a potential economic transition, fueling worries about a possible recession. Investors are also closely watching negotiations between the U.S., Canada, and Mexico regarding energy tariffs. Energy Secretary Chris Wright stated that an agreement to avoid tariffs on oil, gas, and other energy imports from Canada is “possible” but still in early discussions.

For now, tariffs on energy imports from Canada and Mexico have been temporarily paused until April 2. Initially, a 25% tariff was placed on various Canadian and Mexican goods, including a 10% tariff specifically on energy imports from Canada. The long-term implications of these trade policies remain uncertain, particularly as officials work through compliance under the United States-Mexico-Canada Agreement (USMCA).

The Strategic Petroleum Reserve (SPR) remains at its lowest level in 40 years, with 395 million barrels out of its 727-million-barrel capacity. Refilling it to full capacity would take years and an estimated cost of $20 billion, though no formal budget request has been made. President Trump, however, has mentioned filling up the SPR as part of his support for oil and gas. Meanwhile, early data suggests U.S. crude stockpiles increased last week, while distillate and gasoline inventories declined. To prevent further depletion, the Energy Department may cancel scheduled sales.

With fuel price volatility continuing to create uncertainty, the current bearish market presents an opportunity to secure financial stability through fixed fuel pricing. Locking in a set fuel price allows businesses to protect themselves from sudden market fluctuations, ensuring predictable costs and safeguarding profitability.

A sudden increase in fuel prices caused by tariffs, supply disruptions, or economic shifts can weigh heavily on a company’s operating expenses. By implementing a fixed fuel price strategy, businesses can ensure consistency in their fuel budgets, reducing the risk of unexpected cost increases. This strategy is valuable for businesses that consume large volumes of fuel, bid on long-term contracts, or need stable pricing for financial planning.

To learn more about how fixed fuel prices can benefit your business, check out How Fixed Fuel Prices Can Shield Your Business from Market Volatility. This article explores how businesses can leverage fixed pricing to mitigate risk, stay competitive, and maintain budget certainty in an unpredictable market.

Trade policies, OPEC+ production decisions, and global economic conditions could quickly shift market dynamics at any time. The upcoming U.S. inflation report may influence interest rate expectations, which could further impact fuel prices. Contact a Mansfield representative today to learn how we can help protect your budget and lock in certainty for your business.