Hi to all,
Here’s what I have for this Thursday’s price changes:
*Heating and stove oils to drop by 2.6 cents a litre.
*Diesel fuel to drop by 2.7 cents a litre, and...
*Gasoline to drop by 1.4 cents a litre.
Saudi Arabia turns on the taps
A week ago it wasn’t thought possible that we would see a dramatic reversal in the markets as Saudi Arabia was found to have already broken it’s deal with fellow OPEC and non-OPEC producing nations. But according to last week’s production numbers, the Saud’s produced more oil onto the markets that helped send oil prices down.
Saudi Arabia produced more than 10.7 million barrels a day in June month, according to figures released by OPEC, and all in spite of reaching an accord with other members to add just 600,000 barrels a day to the markets in an “effort” to prevent prices from rising. That news played into the markets through late last week.
Also adding to the downwards pressure on prices was the news out of Libya that showed an uneasy peace agreement that would start exports from the African country amounting to 700,000 barrels a day, just shy of half its original production, a move that forced Brent prices lower.
Trump adds weight
Meanwhile, on this side of the world, Donald Trump talked about the possibility of releasing crude oil to the markets from the U.S strategic petroleum reserve, a move that some see as a quick attempt to get other OPEC members to fall in line with adding production. The reserve contains a rough 660 million barrels of oil held in the event of use during a national emergency.
The idea weighed heavily on the markets this week as oil lost ground, WTI losing about $6 US over the past week and Brent dropping by close on $7 US.
U.S inventory report largely ignored
In spite of a U.S Energy Information Administration report that saw a draw of over 12 million barrels, oil prices moved the opposite way as concerns over shortages disappeared in minutes.
The report also showed a balance between refiner capacity of 96.7 percentage points and a drop in gasoline inventories of just 700,000 barrels of product.
That’s it for this week!
Make it a good one...