November and December bring high fuel demand coupled with high fuel margins

  • November and December bring high fuel demand coupled with high fuel margins

    According to Brian Milne, Energy Editor of Schneider Electric, the months of November and December this year have yielded some of the highest weekly fuel demand numbers of the year.

    According to Mr. Milne, two of the three highest weekly demand rates in 2014 happened in November and December. The retail fuels price drop we’re seeing began in mid-October, and since then only two weeks have had gasoline demand below the five-year average. The second week of December had some of the highest retail fuels demand of the year, quite an oddity since typically the highest demand weeks are in the summer months during high travel season.

    What does this mean from a fuel price management perspective? Take these high volumes and multiply them times the high margins at the time, and we can expect exceptionally strong financial results from the publicly held retail fuel companies when they report their calendar year Q4 earnings.

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