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!
Regards,
George Murphy
Twitter @GeorgeMurphyMHA
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