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Tuesday, May 17, 2016

Price changes for Thursday, May 19, 2016

Hi to all,

Here's what I have for this week's price changes:

*Heating and stove oils to increase by 2.9 cents a litre....
*Diesel shows an additional 3.2 cents at the pumps, and...
*Gasoline shows an added 4.2 cents a litre!

Market highlights

*Disruptions are the order of the day
With wildfires in Alberta now threatening both work camps and oil fields themselves, the western Canadian province has also another distinction, being another region of the world that is adding to a supply disruption.
      Almost 600,000 barrels has so far been shut in. That goes hand in hand with Nigeria, also showing some 700,000 barrels a day shut in due to strife in the oil-producing region of that country. Libya also is affected with an ongoing internal struggle for power that has dropped output from the North African country to 200,000 barrels a day.
      Finally, with US domestic production taking a pounding, a drop in production of close on 800,000 a day since the oil crash has some wondering just how quickly the world over-supply is being taken up.
      These disruptions alone amount to 3.5 million barrels a day drop from last year, and we haven't even touched on other projects put on hold because of the crash in other oil-producing countries.

*Demand for gasoline rises
      Gasoline demand is picking up again ahead of the US summer driving season.
      Demand for gasoline products is up 5.1% from the same four week period last year, according to the US Energy Information Administration. That's probably enough to see traders get back into the markets and force up prices to match demand.

       Just another reason why you and me are going to pay for it this week.

That's it for now!


George Murphy
Twitter @GeorgeMurphyOil

1 comment:

nyi said...

SERIOUSLY!!!!! With oil bottoming out and a few factors now will put gas over 110.00/Litre. Let me ask you this... how do you spell GOUGING!!!!