U.S. Appetite for Fuel Approaches Historic Levels; Americans to
Travel a Record Number of Miles in the Months Ahead
Motus,
the premier vehicle management and reimbursement platform, today
released its 2019
Summer Fuel Outlook Report, which reveals key data related to fuel
price fluctuations with a look towards how these changes will impact the
summer driving season. One trend that stands out is that as employment
and population grow, Americans are anticipated to drive a record number
of miles in Q3. As such, U.S. highway travel is anticipated to increase
1.3% this summer.
The report also reveals information behind fuel price trends, including
how costs are impacted by geopolitical tensions. For instance, fuel
prices typically rise over the second quarter and level off in the
summer months of the third quarter. However, thus far in 2019, there’s
been a larger price spike at the start of the second quarter due to
coordinated production cuts by OPEC+ nations. This is actively being
offset by the fact that the U.S. has established itself as a top oil
producer, having increased average weekly oil production by 11% in 2019.
“Taking a variety of factors into account, we expect the national
average fuel price to fall between $2.90 - $3.15 for Q3 2019. We expect
prices to peak in June during the beginning of the summer and unwind
throughout July and August,” said Ken Robinson, market research analyst
for Motus. “Price movement will depend heavily on whether OPEC+
countries agree to increase production when they meet at the end of June
and how quickly they execute. Additionally, unexpected supply
disruptions in unstable areas could also affect these predictions.”
The EIA forecasts U.S. motor gasoline consumption will average 9.54
million barrels per day this summer. That’s slightly more than last
year and nearly the same as the record summer average set in 2017.
“It can be difficult to predict the cost of fuel when so many factors
can affect prices. As Americans head towards record levels of fuel
consumption, it is more important than ever to account for the true cost
of fuel and other driving expenses when you have employees that drive
for work,” said Craig Powell, CEO of Motus. “Motus is dedicated to
helping employers address this challenge and ensure they’re accurately
reimbursing their teams for mileage traveled for work in a fair and
accurate manner, regardless of fluctuations in fuel price.”
Additional findings in the 2019 Summer Fuel Outlook Report include:
-
Over the past three years, on average, 24.5% of overall driving costs
have gone to fuel.
-
The average U.S. fuel price decreased 1.6% between April 2018 and
April 2019.
-
The cost of crude oil makes up more than half of the price of a gallon
of gasoline.
-
Over the past five years the U.S. has established itself as a top oil
producer, increasing average weekly production by 29%.
To access the full report, please visit: https://resources.motus.com/reports/2019-summer-fuel-outlook-report
About Motus
Motus is the definitive leader in mileage
reimbursement and driver management technologies for businesses with
mobile workers and fleets of all sizes. Only Motus leverages deep
insights captured across the world’s largest retained pool of drivers to
calculate personalized and compliant vehicle reimbursements, keep
drivers productive and safe, and ultimately maximize returns and
minimize risk for all aspects of the mobile workforce. Motus’ expertise
also underpins the annual Internal Revenue Service (IRS) business
mileage standard, the amount an individual can deduct for business
vehicle expenses. For more information about the company, please visit www.motus.com
or connect with us on Twitter,
Facebook,
or LinkedIn.
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Copyright Business Wire 2019
Source: Business Wire
(May 15, 2019 - 9:00 AM EDT)
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