As oil prices rise, what should you prepare as a wholesaler?

In these unprecedented times, everyone has to work hard against negative issues such as inflation, climate change, and public health. In recent days, the price of international oil and gas has risen, which has put pressure on people who travel by car.

Expensive oil prices, congested urban roads, and environmental pollution are all important factors that people need to consider when traveling. As individuals, we can do everything we can to change the status. As we have seen, the emergence of electric bicycles as a mode of transportation has greatly improved our lives.

Electric bicycles are faster than regular bicycles and more environmentally friendly than cars. In the process of cycling, we can not only exercise our body, but also reduce environmental pollution and achieve green and low-carbon travel.

Oil prices on the rise

Have you seen this picture? This picture also means that the price of oil has continued to soar.

The continuous rise of international oil prices is an important transportation problem faced by people all over the world. When the price of food, cars or streaming services goes up, it's relatively easy to cut back on those categories. But when international oil prices rise, people have relatively few alternatives.

International oil prices mainly depend on two major benchmark oil prices: Brent crude and U.S. WTI crude. In March 2022, the two major international benchmark oil prices rose by 40% at one point.

WTI Crude Trends

Brent Crude Trends

Source: oilprice.com

As shown in the figure, the trend of oil prices in the past year is selected. It can be seen that international oil prices will continue to increase in 2022, and the growth rate will be relatively large.

Why are oil prices so high?

Since the beginning of 2022, with the weakening of the impact of COVID-19, global oil demand greater than expected, lack of supply growth, political turmoil in Russia and Ukraine, and snowstorms in the United States, international oil prices have been on an upward trend.

Since January, the average price of Brent crude oil has been US$87.66/barrel, and since February, it has been US$92.04/barrel.

The March WTI crude oil futures reached as high as $95.46 a barrel, the highest level since September 2014. The April Brent crude futures reached $96.48 a barrel, approaching the $100/barrel mark, the highest level since September 2014.

At present, the oil market presents the characteristics of "four highs, two lows and one strong" of high oil price, high discount, high gross profit, high demand, low inventory, low supply and strong structure. As crude oil futures prices continued to rise, so did spot prices.

How should you avoid paying for higher oil prices?

Fortunately, electric bicycles can provide people with a convenient way to travel, while also reducing the pressure on people from rising oil prices.

As a trusted brand in the e-bike market, we believe that our e-bikes or electric bicycle conversion kits can help you regain control of your financial life and provide you with a great experience. You won't have to worry about expensive oil prices hitting your wallet, and you'll get a full workout by riding.

Electric bikes are a great alternative to oil-guzzling cars, making your commute easier, and your company might even offer you a place to recharge without you having to pay your electricity bill.

Running errands, exercising, cycling, or visiting friends, etc., you can do it with an electric bike, which can be a good substitute for a oil-guzzling car. You can invest in e-bikes with a fraction of your capital, and not only that, electric bikes are a green way of transportation that’s good for the earth.

What do you need to do as a wholesaler?

Promote the concept of go green, attract new customers

Why go green? Wherever you go, people around the world are paying attention to going green because it protects our homes.

The oil-guzzling car will bring a lot of exhaust gas, which will bring a lot of pollution to the environment for a long time. As a wholesaler you can promote such a concept to your target customers. Electric bicycles can not only serve as a substitute for oil-guzzling cars, but also reduce pollution and bring you a greener environment.

Recommendations from consumer needs

As a wholesaler, it is most important to consider issues from the perspective of consumers. Faced with a sudden surge in oil prices, consumers will definitely demand alternatives to cars. In the face of different consumer groups, it is necessary to consider their needs.

If the budget is sufficient and there is no ordinary bicycle, then you can recommend electric bicycles, which do not need to be installed, and are available upon arrival. If the budget is limited and there are ordinary bicycles, you can recommend electric bicycle conversion kits, which are cheap and will not waste their own bicycles.

In short, electric bicycles are more suitable for beginners to buy, and it is more convenient without installation. Electric bicycle kits are suitable for experienced riders and can be assembled freely by themselves. All you have to do is recommend products suitable for different groups of people.

According to demand, timely stocking

According to the current market, the electric bicycle market is likely to usher in a wave of boom. Faced with the potential growth of market demand, as a wholesaler you need to replenish even after placing an order. Due to the current international situation, in the face of a large number of orders, suppliers also need to reserve a certain amount of time for stocking, so you need to prepare inventory in advance to prevent the shortage of goods.

In summary

Oil prices may continue to rise in the coming months, but now you must know something and know what you can do about it. As a wholesaler, you need to gain insight into the market and seize the market as soon as possible to get the maximum profit!