A load of rubbish and oil above $52

"The average tractor-trailer travels less than seven miles on a gallon of diesel, making it one of the least-efficient vehicles on the road.” Wall Street Journal   What a load of rubbish!  Tractor trailers often weigh 35-39 tons loaded (90% of the time) and 17 tons empty, (10% of the time) and get 7 MPG or more.  On the same ton-mpg basis a 3 ton diesel pickup should get 70 MPG.  But, my Ford F250 diesel gets 17-20 MPG. Class 8 diesels are efficient!   There is real value in adding features to improve mileage.  The problem is there are diminishing returns – and every new design or tweak costs money. The next big thing going on the heels of improved aerodynamics is likely to be light weight motors and transmissions.  Watch this space.
We have three world events that could impact global oil prices: 
  1. Will the US certify that Iran is keeping the accord?
  2. An embargo on Iraqi Kurds exporting oil produced in their area against the law and wishes of the Iraqi government.
  3. OPEC reigning in African oil producers who are not subject to quota reductions. It seems they sped up their pumps – shipping way more than expected.
All could cause reduced supply = higher costs!