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Tuesday, April 05, 2016

Price changes for Thursday, April 7, 2016

Hi to all,

Here's what I have for this week's price changes. Keep in mind the winter blend that affects both heating and Diesel numbers!

*Heating and stove oils both show a drop of 2.6 cents a litre....
*Diesel fuel shows a drop of 3.4 cents a litre, and...
*Gasoline shows a modest drop of a half penny a litre.


Market highlights

*Oil started another retreat this week as speculators began to doubt whether an agreement would be reached on total output levels by both OPEC and non-OPEC members. According to a news source, an agreement has been reached ahead of an upcoming meeting in Doha, Qatar on April 17th.

*Iran has no intention of signing on to the fixed output agreement at this point. Production levels there continue to increase along with that of Iraq, who both helped to add an additional 90,000 barrels on to OPEC's total March output.

*Last Wednesday's inventory report from the EIA was a little bit bullish and probably gave a good snapshot of where prices may be headed in the next bit. While distillate prices are lower because of warming US weather, gasoline remains steady ahead of the summer driving season-for now.
The report showed an increase in refiner capacity, growing output an additional two percentage points. While gasoline inventory was down, the numbers seem to show that gasoline demand can be met for the rest of the summer. That helped gasoline spot prices, as well as futures prices, start a slow retreat. That's why we're looking at a very modest drop in prices this week.

That's it for now!

Regards,

George Murphy
Twitter @GeorgeMurphyOil

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