Hi to all,
Here's what I have for this week's price changes:
Heating and stove oils add 15/100ths of a cent.
Diesel adds 2/10ths of a cent, and...
Gasoline adds 1.7 cents a litre.
The Canadian dollar took another pounding against it's US counterpart
this week as the US dollar gained on speculation of impending interest
rate increases to come. That dropped the Canuck buck, which lost another
two cents against the US greenback and helped to again raise gas prices
this week as well.
In the meantime, OPEC meets later this week,
June 05th in Vienna, to discuss production quotas that seem to have hit
new records themselves in spite of lower demand for oil. OPEC pumped
31.579 million barrels a day last month in an effort the Saudi's are
calling to knock out higher cost producers. Iraq produced a record 3.87
million barrels a day of that.
But there's danger ahead for oil
prices, if some market indicators are right. The decline in rotary rig
counts in North America may be slowing, as all signs point to lower cost
producers coming back online in Canada. Here, the rig counts were up by
26 for the last week with the US just down by ten. Lower costs to
produce here can partially be cited here for the additional working
rigs. That, and an increase in oil prices over recent weeks has raised
the bar on profitability.
As well, I keep watching the floating
storage numbers increase in the Middle East with floating storage of oil
now accounting for 185.1 million barrels in tankers with no-where to
go. IF OPEC keeps pumping out a record production for oil over the next
while, it could lead to another collapse in oil prices in their vain
attempt at hitting high cost producers.
I'll leave it at that for this week! Any questions, feel free to drop me a line!