# The market’s new normal: oil at $94 a barrel is here to stay—at least for now.
What happened
Brent crude ticked up 0.7% to $94.46 per barrel on Tuesday, after hovering around $72 when the Red Sea conflict began. The rise is tied directly to stalled diplomatic talks over the Strait of Hormuz, the world’s chokepoint for about 20% of global oil shipments. With no breakthrough in sight, traders are pricing in a continued risk premium.
Why it matters for dispatchers/drivers
Fuel is the single biggest variable cost for any carrier—averaging $3.20‑$3.45 per gallon for diesel in the U.S. and CAD 1.55‑1.70 in Canada. A $2‑plus jump in crude translates to roughly 5‑7¢ per gallon at the pump, eroding profit margins by $0.30‑$0.45 per mile for a typical 6‑axle tractor. Dispatchers will feel the squeeze when shippers start demanding lower rates or tighter lanes to offset higher freight costs. Drivers see it in their per‑mile pay, especially for owner‑operators whose fuel‑reimbursement formulas are often static.
My take
The market will stay volatile until the Hormuz deadlock resolves, and that’s not happening next week. Trucking firms must stop treating fuel as a “nice‑to‑manage” expense and start building it into every rate negotiation. If you keep paying the same linehaul while fuel spikes, you’re signing a profit‑killing death warrant. EK Dispatch Academy teaches you how to embed fuel‑adjusted pricing into your contracts—learn it at /curriculum.
What you should do
- **Lock in fuel‑adjusted rates** now; add a **¢/mile surcharge** tied to the U.S. Energy Information Administration’s weekly diesel price.
- **Invest in fuel‑efficiency tools**: aerodynamic kits, low‑rolling‑resistance tires, and driver‑coach training (available at /tools).
- **Diversify lanes**: target regions with lower fuel taxes (e.g., Midwest) or high‑value, time‑sensitive loads that can bear higher rates.
*—EkJot Singh, Founder, EK Dispatch Academy*