
Crude oil prices are moving higher amid concerns that low prices have led to too many crude production cuts.
Crude oil prices are moving higher amid concerns that low prices have led to too many crude production cuts.

An oil well in North Dakota. Photo: ConocoPhillips

Crude oil prices are moving higher amid concerns that low prices have led to too many crude production cuts.
The lower prices this year will eventually lead to lower production in the U.S. A Friday report showed the number of rigs in service for drilling in the country fell for the third straight week last week.
According to the Wall Street Journal, government figures show U.S. oil production has fallen from 9.6 million barrels per day in April to 9.1 million last month and is expected to hit 8.6 million by mid-next year. This is raising concerns about oil, and consequently fuel prices, later this year and well into 2016.
Crude prices in New York as well as overseas were up more than 3% and nearly 2%, respectively, around mid-day on Monday. However, the New York price follows a Friday drop of more than 4.7%, indicating the crude market remains extremely volatile.
But there is another estimate that has some worried.
The OPEC oil cartel is forecasting U.S. crude production could drop next year by a whopping 27%. That, along with oil production cutbacks overseas, could push the price of oil back up $80 by 2020, taking diesel and gasoline prices along with it.
While trying to figure out when oil and fuel prices will return to higher levels is impossible, it may be safe to say that those who have been enjoying the big price declines the past year, may find such days are numbered.
The one wild card remains the U.S. Federal Reserve, after deciding not to hike interest rates last week, there is now speculation if they will move before the year is out. No matter if its in 2015 or next year, some analyst warn that such a move could slow down the econonmy and that could lead to less demand for fuel and oil. That could throw expectation of higher prices both straight out the window.

Range Energy said its production-ready eTrailer system proved it can boost stability, safety, and efficiency in sub-zero winter conditions as the company moves toward scaled deployment.
Read More →
Is your company a leader in sustainability efforts among trucking fleets? If so, Heavy Duty Trucking's editors want to hear from you.
Read More →Watch to learn how Deflecktor's new wheel cover design is taking a simpler approach to aerodynamics, with an eye toward making it more practical for both trucks and trailers.
Read More →
Aerodynamic wheel covers can deliver small but meaningful fuel-economy gains for fleets, and Deflecktor says its latest design aims to make the technology easier and more affordable to deploy.
Read More →When diesel prices are as volatile as they've been in 2026, it makes it tough for trucking fleets to plan and control costs. Breakthrough Fuel's Jenny Vander Zanden has insights on near-term savings strategies.
Read More →Practical steps fleets can take to manage fuel costs, from purchasing strategies to driver behavior.
Read More →
Prices jumped another 24 cents in a week, with California topping $7.50 and new data showing fleet fuel costs may already be at record levels.
Read More →
Hydrogen combustion engine trucks will be especially suitable over longer distances and in regions where there is limited charging infrastructure or time for recharging of battery-electric trucks, according to the company.
Read More →
By joining Daimler Truck and Volvo, Toyota brings fuel cell expertise to a joint effort aimed at making hydrogen viable for heavy-duty transport.
Read More →
Trucking operators are slowing speeds, cutting empty miles, and declining unprofitable freight as diesel costs continue to rise due to conflict in the Middle East.
Read More →