The travel industry is starting to recover; and for that reason, the fuel industry is as well. 2020 not only saw oil prices hit under $0, but the complete stop of production has made fuel prices likely to see highs that they haven’t seen in around a decade. And this is without considering what the cruise industry can use.
Here are five fuel industry predictions to look out for in 2021.
1. Increase In Travel
The Biden administration has been able to deliver vaccines at rates that weren’t imaginable when they took over. Currently crossing over 100 million dosages already given.
This increase in immunity has given rise to people wanting to travel more. Airlines are already faring better than this time last year and cruises are set to start up again in Q3 to Q4 of 2021.
2. Increase In Wages
Wages around the world are steadily increasing. Fuel industry careers are already high-paying because of the risk, but more regulation and an increase in wages can look to see an increase in fuel prices.
Fuel companies are going to look to push those wage increases to the consumers rather than take a loss in profits.
For that are currently working in the industry and need fuel dispensing equipment, be sure to check out the link.
3. Slowdown In Production
Because of the lack of storage available around the world for the fossil fuel industry, the production won’t be the same until those are dried up.
The current problem that plagued the Suez Canal will also likely play a portion into this slowdown. Since trade was halted for roughly a week.
4. Breakdown In Relations
With a change in administration, relations are either going to have to restart or, more than likely, breakdown. This breakdown in relations with fuel prices will lead to a temporary increase in fuel.
Countries are going to have to pay more from countries that aren’t on the same page as them.
5. Increase In Domestic Usage
When the breakdown of relations, imported oil will increase and so will domestic oil. Because domestic oil also saw a decrease in production, there won’t be the supply needed to meet demand.
But once production does start and supply meets demand, then there should be a noticeable drop in prices. If countries start to become independent with their own oil usage, this could lead to a permanent decrease in the amount of crude oil being imported and exported.
The Fuel Industry Is Set To Recover Nicely
While the fuel industry took a big hit in 2020, 2021 is already starting to pan out to be a big year for the sector. Between the increase in travel and the changing of administrations, there are bound to be noticeable increases across the board. Though these recoveries might not reach the heights of what they once were in 2019.
If you want to learn more about predictions for different economic sectors, then be sure to check out the rest of the blog. Know someone that works in the fuel industry? Share this article with them to see what they say.