Hi to all,
Here's what I have for this week's price changes:
Heating and stove oils to increase by 1.9 cents a litre.*
Diesel to increase by 2.3 cents a litre*, and...
Gasoline also adds 1.1 cents a litre.
*With increases to distillate fuels like heating and diesel exceeding that for gasoline, it's an easy signal that speculators in the markets have now turned their attention away from the gasoline markets for the next little while. I expect more attention on these fuels from the speculators for the next few months
In the markets
Volatility in the oil market continues to show wild swings as they attempt to find at least a temporary bottom to oil prices. Speculators still fear a further drop in oil prices, probably part of the reason why oil hasn't shown any appreciable increase in the past few weeks. Indeed, the gains and sudden drops in oil are consistent with speculators continuing fears of bad economic news yet to come with the markets. Some speculators are saying oil prices could retreat even further, and as low as $30 US a barrel before we see some sense return to the markets.
The latest production figures from the US Energy Information Administration are telling some news that the "oil price war" is beginning to tell on overall US domestic production. The Saudi's fired the initial shots to try and reign in US production of domestic resources by driving down prices for oil to a point that it simply wouldn't be affordable to pump. US domestic production has dropped from peak production in July of 9.6 million barrels a day to the latest August 28th report of 9.2 million barrels a day. Of course, part reason of market fears whenever we see oil prices rally also centers on the fact that, while the spigots have turned off, any increase in oil prices can easily turn them back on again.
That's it for this week!