Oil prices set to remain high in Q4, how to save on your fuel costs

The price of oil looks set to remain high through Q4 of 2011 with Brent oil futures ticking over around $112 a barrel in trading this morning, we look at how you can save on petrol and fuel costs as there are some common easy to follow tips for saving money at the pumps.

Brent Oil Price – End of 2010

Brent crude oil futures ended the last trading day of 2010 at $94.59 a barrel on the ICE Futures Exchange, while the ICE US Dollar closed at $79.31. The price of Brent has maintained an upward momentum throughout the year and US WTI has not been far behind.

Oil Price Forecasts

The jump in oil prices in 2011 is adding to concern about the economy, according to a draft of the IEA’s 2011 World Energy Outlook, which also raised its view of long run prices.

The draft dated July 2011, obtained ahead of the publication’s launch next week, assumes nominal oil prices of $114 a barrel in 2015 and $212 in 2035. Last year’s report assumed prices of $104 and $204 by those dates.

Brent oil prices hit a 2011 high of $127 a barrel in April 2011 as the conflict in Libya shut down its supplies. The IEA, which represents 28 industrialised countries, has repeatedly said this year oil prices pose a threat to growth.

Oil prices are expected to go up over the long run as rising crude oil demand requires the development of more costly sources of supply.

With oil prices stubbornly high, there are a few ways in which you can save money on petrol costs by driving smarter and thinking on your feet. Here’s a few tips:

Filling Up Your Car

Fill up the car’s tank when it is half full, don’t wait for it to approach empty. The reason being that the more petrol you have in your tank, the less air is occupying the tank’s empty space. Petrol evaporates very quickly.

Driving More Efficiently

Drive more efficiently, speeding can not only cost lives, but it can also cost dearly at the pump so stay within speed limits and avoid excessively quick acceleration. Avoiding quick stops and starts can improve mileage by up to five percent.

Looking After your Vehicle

Remove unnecessary items from the boot of your vehicle. An extra 50kg at the back can reduce fuel economy by up to two percent. Keep your engine serviced according to your owner’s manual to increase mileage by an average of four percent. Keep your tyres properly inflated and aligned to increase mileage up to three percent.

Pay for Fuel with a Cashback Card

According to financial website Lovemoney.com, if you know you can cover the cost of your fuel in full, use a cashback credit card wherever possible. This will ensure you get cashback on all the fuel purchases you make, similar to getting a discount on the fuel wherever you get it from, according to their website.

UK Petrol Costs could Hit £100 a Tank

Motorists have been warned that the cost of filling up their cars is to rise dramatically within a few years and could hit £100 per tank of petrol, leading economists have warned.

Struggling families were told to brace to expect the average cost of unleaded petrol to rise from an average of £1.34.8 today to £1.54 within four years.

After a brief respite, fuel costs will rise again within a few months amid surging demand from booming Asia economies, which are expected to trigger a boom in oil markets, according to forecasters at the Ernst & Young ITEM Club.

“By 2013 prices at the pumps will be eating into household finances once again. Demand from the emerging markets will maintain the pressure on inflation, as will the increase in fuel duty on the home front.” said Neil Blake, a senior economic adviser to the ITEM Club.

“The good news is that food, oil and petrol prices will all start to come down next year, providing some much-needed relief for the hard-pressed consumer. However, the five-year outlook is far less rosy as inflationary pressures begin to bite again.” he said.

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Oil prices set to remain high in Q4, how to save on your fuel costs