Good evening all,
Here's what I have for price changes this week;
Heating and stove oils predicted to drop by 1.25 cents a litre.
Diesel to drop by 8/10ths of a cent, and...
Gasoline to drop by 3.2 cents a litre.
Bank of America on oil
of America is projecting more weakness for oil to come in the third
quarter of this year. Expectations of the company show Brent prices to
average $50 US from their previous estimate of $54 US a barrel. Prices
for WTI (West Texas Intermediate) were expected to average $45 US a
barrel from their previous estimate of $50 US.
US domestic production seen rising
drillers added an unexpected 21 drill-rigs to the markets this week.
The move was a surprise, but shouldn't have been with investors looking
for a return on their investment as well as expectations from cost
cutting measures. Those measures included everything from salaries to
"re-fracking" previously producing wells to get new production. The move
removes previous drilling costs with the assumption being that the well
is already done, so the frack can occur. Canada added eight rigs over
the same time frame last week.
Brent prices to falter amidst market turmoil?
prices pushed lower this last regulatory session as market unease in
China played heavily through the week and continues to do so. As stated
last week, there were considerable debate from market speculators about
the longevity and stability of the markets in China. While growth has
massively slowed, stocks there continue downwards, increasing doubts of
overall Chinese oil demand. As well, all bets are off now in how much
oil Iran can add to the markets, considering the world situation with
oil prices. Speculators feel that, with massive world inventories of oil
out there, Iran's addition of oil to the pot will only hinder the glut
problem on the markets, making it less likely for oil prices to recover
anytime soon. Add to that problem a simple fact that, with Iran's entry
back into the markets expected soon, competition amongst oil producers
will only increase, with that likelihood that everyone is going to be
forced to compete for market share.
On this date
Brent oil price on July 29, 2014?...$106.47 US a barrel
Those were the days, my friend!...
That's it for this week!