December, 2011 Diesel and Natural Gas prices have declined compared to November by at least six percent while Crude remained unchanged.  The SK Index, which is a combination of #2 Diesel and Natural gas, has decreased by 6% or eleven cents.  January has started off with improvements in Crude and Diesel prices.  Outlook is good for January.

In the example below, a customer with their “Sample PFO” (Pay For Oil) indexed at 79 cents in January, 2011 experienced an increase in PFO by 13 cents or 19%. Indexed PFO rates move up and down according the trailing month’s average of the SK Index. The December average price of the SK Index went down by eleven cents or 6% from the November SK Index price.  This means customers that have taken advantage of indexed pricing will see their PFO drop by 6% for the next 30 days.  In the example below, that would equal a drop of three pennies in PFO. 

Feel free to contact me if you have any questions on this. (Matthew Gudorf / Info@usedoil.com)