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Tuesday, April 07, 2015

Price changes for Thursday, April 9, 2015

Hi to all,

I hope Easter was good for everyone and that for some it was a time of rest. At my place, between the twins, it was "chocolate madness"...

Either way, here's what I have for this week's price changes:

Heating and stove oils show a slight drop of 7/10ths of a cent a litre.
Diesel drops by 9/10ths of a cent, and...
Gasoline shows up by 1.8 cents a litre.

No doubt about it, but speculators know the start of the summer driving season is on the way, and that right now is about their only hope of scraping together any kind of a profit on their fare. April month has always been the month where we have historically seen that run-up to the US Memorial Day weekend (our May 24) that marks the start of the heavy demand gas guzzling season.

Or, at least that's what investors are hoping for!

The Canadian dollar increased slightly on news of rising oil. Earlier in this session saw skeptics balk at talk of the lifting of sanctions in Iran that would lift world crude stocks up by another one million barrels a day. They think that it will take some time to bring Iranian crude back to the markets, as the sanction agreement talks about removing sanctions as Iran conforms to the agreement, rather than immediate. The deal comes into full effect by June 30th.

Talk in the markets also reflected on Saudi Arabia increasing prices to its Asian customers, probably in a move over concerns of war costs as the drama in Yemen continues to unfold, and not because of any shortage in product availability. The Saudi's have to be careful about losing market share to other sources of oil out there. At this point, they really can't afford to lose any, now that they have a war of their very own!

"Man's inhumanity to man..."

That's it for this week!


George Murphy
Twitter @GeorgeMurphyMHA

1 comment:

Unknown said...

If history is anything to go by, from all the previous concessions granted to oil majors during the Hosni administration, it resulted in almost $30 billion loss of profits and an unstable supply of oil and gas , despite the increased oil production before the revolution crisis that hit the country.