Hi to all,
Here's what I have for this week's price changes.
all the moves in the international political arena, it may not be a lot
of action in the refined commodity department, however!
Heating and stove oils show a drop of 1.8 cents a litre on the way.
Diesel fuel shows down by 2.1 cents a litre, and...
Gasoline shows an added 9/10ths of a cent.
Greece and the Euro
continues to play in the markets, but as much as what people would have
figured. With such a low gross domestic product and already an
unemployment level that's pretty high, some are saying that Greece has
played it's card on oil already. Greece amounts to a much lower GDP than
China, which has it's own issues with the stock markets. There, the
Chinese government has ordered government run agencies to begin buying
stocks of private companies in order to maintain their value and help
keep some semblance of order in trading. Some analysts are saying that
we can expect to see another thirty percent devaluation of stocks there
before stability reached their own markets.
a deal over Iran's nuclear program has been signed, don't expect to see
Iran's oil output to hit an added 1.8 million barrels right away.
Analysts say that due to aging infrastructure, Iran can only produce an
added 500,000 barrels a day more upon lifting of sanctions, and those
sanctions have to be tested before they're lifted. Analysts also say
that Iran will be able to add another 500,000 after six months has
passed. But the kicker here is that Iran has over 30 million barrels of
crude already in floating storage ready to hit the waves as soon as word
is given. That's compounded by a total "floating" figure of 174.8
million barrels already waiting to go.
Iraq, Saudi Arabia continue to break production records. Libya back?
from Iraq shows that country increasing production again in July to
amount to 3.86 million barrels, while it's neighbour, Saudi Arabia
hitting production daily at 10.6 million barrels in what I believe is a
move by those OPEC countries to stymy the revival of US domestic
production. That's another reason why oil showed some retreat over the
past week. To add to world glut woes, two of the fighting factions in
Libya have reached an agreement to allow oil exports there to resume.
Amongst the bloodshed, Libya has been exporting a rough 800,000 barrels a
day through two coastal ports previously shut in.
Canadian dollar against the US greenback lost another penny in a week
that saw oil prices on the retreat again, albeit to the benefit of the
US dollar. Whenever I see a retreat in oil, it's usually a time for
speculators to invest in the US dollar, and that lowers our own,
considering we have a dollar closely tied to performance of natural
resources like oil.
That's it for this week!