Hi to all,
Here's what I have for price changes for this week, all ahead of our "May two-four" weekend:
Heating, stove oils and Diesel fuels to decrease by 7/10ths of a cent a litre.
Gasoline to drop by 1.8 cents a litre.
Arabia continues to break records when it comes to overall domestic
production. Not letting up any, in spite of lower prices, the lead OPEC
member continues to pump out product in the face of a meeting to discuss
OPEC production later in June. The Saudi's pumped close on 10.3 million
barrels a day last month.
In the meantime, their production
continues to show a heavy build in "floating storage". With product
nowhere to go, oil keeps piling up in tankers that now totals almost 174
million barrels, up almost 20 million barrels from a short three weeks
ago. A strong sign that the glut continues, the fact that US domestic
might start to pick up again may compound the problem of a glut in the
markets, if the Saudi's don't act first.
decline of rotary rig counts is beginning to taper, probably influenced
by the fact that US prices for West Texas Intermediate have climbed to
over $61.00US a barrel over the last three weeks. It may be a sign that
US producers will come back online knowing they can get some return on
their investments. Some 4700 wells are ready for a turn of the spigot to
bring more oil into the US markets if prices continue up, and that
could cause a breakdown and collapse again in oil prices if consumer
demand doesn't rise to meet it. So far, only gasoline prices have
enjoyed a slight run-up in prices as the US summer driving season
The Canadian dollar has shown mostly steady against
its US counterpart, but may be showing signs of life if the price of oil
keeps rising. Any turnaround of US domestic production of oil could
change that quickly however. Refined product prices have also remained
steady against rising oil this last week. Oil prices themselves have
shown to be volatile with sharp increases, followed by just as sharp
declines as market data warrants.
That's it for this week!