Sorry I'm late, but computer issues at home didn't allow me to get in and post last night!
Here's what I have for this week's price changes:
Heating and stove oils show down by 2.0 cents a litre.
Diesel shows a drop of 2.2 cents a litre, and..
Gasoline shows a very modest drop of just a half penny.
Better than nothing, I guess...
The Canadian dollar remained relatively steady against the US dollar
this week against the volatility of oil. Numbers for oil were simply all
over the place with rapid movements up and down.
reason for oil's increase the past two days itself may seem odd. While
industry insiders have been saying that OPEC is pumping record amounts
to maintain revenue, Saudi Arabia itself responded on this rare occasion
to tell the same industry insiders that they were pumping record
amounts in order to meet demand from their clients. Oddly enough, the
numbers for oil in floating storage seem to show something happening
with all that extra oil the Saudi's have on hand. Floating storage
numbers showed a drop of close to nine million barrels this week to sit
at 173 million barrels.
itself, that one got the markets moving amidst speculation that the
Saudi's may be right. An open question in itself: While the Saudi's are
supposedly pumping record amounts, if demand does pick up, will there be
enough capacity for Saudi Arabia, or OPEC, to meet it?
as well over Iran being able to enter the markets with an added 1
million barrels a day. That was the number a lot of insiders were
kicking around as a possibility that an agreement would be reached over
access and monitoring of Iran's nuclear program. The details of the
agreement were supposed to be finalized this week, but politico's in
Iran are worried over sovereignty and security issues with monitoring of
sites not previously agreed to.
Finally, while the Saudi's
continue to pump to knock out smaller US producers, their program seems
to be working. But here in Canada, it seems smaller producers continue
to come back online. Due to the lower Canadian dollar, one can only
speculate, but rig counts in Canada climbed another 18 rigs last week
while the US dropped 10.
I'll leave it at that for this week!
That's it for this week!