Residential Fuels

Railway & Mass Transit Commercial Fuel Solutions in PA and MD

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Skytrain

Pricing

Understanding Fuel Pricing

In the U.S., transportation fuel spend ranges from 20 to 30 percent of the cost to move goods to market. Fuel prices are highly volatile and are a direct reflection of the global crude oil markets. There are many factors affecting fuel prices:

  • Supply & Demand
  • Cost Of Production
  • Interest Rates
  • Weather & Natural Disasters
  • Global Inventories
  • Geopolitical Factors
  • Futures Markets
markets

Future Markets

Futures Markets

Oil is one of the most unpredictable commodities on the market. Understanding the factors that affect oil prices and how traders, governments, and consumers play a role in shaping them is crucial.

Oil prices are influenced by traders who place bids on oil futures in the commodities market. Futures agreements are commitments to purchase or sell oil at a designated future date for a predetermined price. Oil derivatives are financial instruments tied to the price of oil and traded on financial exchanges.

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