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Tuesday, February 16, 2016

Price changes for Thursday, February 18, 2016

Hi to all,

Here's what I have for this week's price changes, keeping in mind "winter blending" which may throw off the numbers for heating oil and diesel fuel just a little.

*Heating oil shows a drop of just 8/10ths of a cent a litre....
Stove oil shows the same 8/10ths of a cent drop.
*Diesel fuel shows a drop of 4/10ths of a cent a litre, and...
*Gasoline shows a slight increase of just 3/10ths of a cent a litre.


Keep in mind that my margin for error is three tenths of a cent a litre outside of winter blending!

Highlights.

*The Canadian dollar remained relatively steady against the US greenback, averaging a rough $1.385 against the US buck over the last seven days.

*Markets are mostly in a waiting mode as they wait to see if any concerted action will be taken to institute production cuts between Russia, Venezuela and Saudi Arabia. Saudi Arabia and Russia are mostly responsible for added oil supplies worldwide.
   As a footnote to all this: The Saudi's, Russia, Venezuela and Qatar, all signatories to a deal that will stabilise production at January levels, say that Iraq and Iran must also curtail production if the agreement is to hold.

   Fat chance of that!

   Remarkable when you think about it, but world oil producers' concerns over added world crude stocks that is keeping crude oil prices at an extreme low are now talked about between major producers in the world's biggest case of "collusion" in an effort to help bolster prices again.
So much for the free market!

*Watch Brent prices in the coming few weeks.
News out of Iran sees that country sending it's first load of oil in four years to the European markets this week as Total SA out of France is seen to be buying off the now sanction-free country.
Iran, by the way, is not party to ongoing talks between Russia, Venezuela and Saudi Arabia over production cuts.

*A new brokered peace in Libya may also add more crude to the markets. With a peace deal in place with a new provisional government, it is possible that European markets will see added shipments from the North Africa country in the coming weeks as they seek to re-enter the market after an uneasy civil war.

That's it for this posting!

Regards,

George
Twitter @GeorgeMurphyOil

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