Supply Remains Tight as Driving Season Nears

This morning crude prices are up as the market prepares for the incoming driving season. Summer is nearly here, which means travel is going to pick back up. With fuel supplies stretched thin and gasoline inventories sinking, it’s looking like this summer could see significantly higher fuel prices.

Memorial Day typically marks the beginning of summer, and the beginning of travel season for Americans. This “travel season” usually lasts until Labor Day and starts to ease up shortly after. Now that Memorial Day is just a week away, many analysts are fearful about the supply crunch that could be associated with this holiday. New data is showing that more people are driving in the United States lately, and this will certainly start to pick up as planned summer vacations unfold. To add to the supply tightness, today a weaker U.S. dollar is making crude cheaper to buy, shaking up the supply chain even more.

Overall, declining inventories and close to $5/gallon gasoline is not making the greatest first impression for driving season for consumers and businesses alike. All but three states (Georgia, Kansas, Oklahoma) are experiencing at least $4/gallon gasoline prices. While understanding it may take a year or two before prices start to retreat at the pump, there will be some that decide against road-tripping this summer. The COVID-19 scare in the states is over as people resume normal travel, but a new scare is looming at the pump this summer.

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Sign up for FUELSNews for daily market information and insights
Sign Me Up
Give Us a Call Today

We are happy to discuss your business challenges over the phone and answer any questions.


Send Us an Email

Ask your toughest questions. We'll get back to you with the best answer humanly possible.

Send Email

Find a Mansfield Location

Need to contact a specfic office? View contact information for offices across the country.

View Locations

Get a Quote Today

Let us know what type of fuel or service you need and a team member will get a quote to you quickly.

Get a Quote