Follow by Email

Tuesday, September 30, 2014

Numbers for Thursday price changes

Hello to everyone,

Here's what I have for this Thursday's price changes:
Heating and stove oils expected to rise by 1.25 cents a litre.
Diesel expected to rise by 9/10ths of a cent, and...
Gasoline shows an added 3.4 cents a litre.

*Note that I believe it is this Thursday where the winter blend for heating and Diesel fuels comes into effect, so the numbers for those fuels may be slightly off as a result of the new blend. Use those numbers as a rough indicator only.

The markets were a little choppy this last period with everything from sell-offs of oil interests to refinery shut-downs in the US northeast and eastern Canada. That's why we're looking at a sharp jump in gasoline prices this week, along with some of the distillate fuels. That, and the other downside factor of the strength in the US dollar. Because there's such insecurity over world markets still, and slow worldwide economic recovery (if any) outside the US, their dollar has been gaining an awful lot of strength against the Canuck Buck. We've lost 1.2 cents against the US dollar just this last week!

On the positive end, I don't expect those prices to stick for next week. Already, the markets are starting to take notice of an impending glut in the worldwide markets and that has sent all crude oil prices to the downside that consumers should start to notice shortly.

The sharp increase to Libyan production this last week, all in spite of some unrest there has sent Brent prices down. Speculators, especially those selling hedge funds into those markets, have been pulling out from their long positions now that the writing is on the wall as regards to an abundance of crude out there. US domestic production has hit another record with the EIA estimating overall US numbers hitting close on 8.9 million barrels a day.

I'll leave it at that, but right now, speculators are now betting on lower oil!

Feel free to share this!


George Murphy
Twitter @GeorgeMurphyMHA

No comments: