Hi to all,
Here’s what I have for this
week’s price changes:
*Heating and stove oils show
an added 1.1 cents a litre.
*Diesel fuel shows an
additional 2.1 cents a litre at the pumps, and...
*Gasoline also shows an added
1.1 cents a litre.
Market highlights
OPEC talks about holding
production cuts meeting
Some OPEC members are again
talking about the possibility of putting “further” production cuts in place
after watching the fall of oil again this week. Member countries like Venezuela
are struggling in the tide of falling oil with the Mediterranean OPEC member
swimming in a mounting tide of debt because of faltering oil prices.
Russia
is also keeping in mind how low oil has cost their own economy and are again
also keeping the possibility of production cuts in mind for a possible
September meeting.
But
the possibility of cuts doesn’t seem to hold water in some circles...
Both
Iran and Iraq have been discounting oil prices to their Asian customers against
their fellow OPEC member Saudi Arabia. After an initial rise in oil prices,
markets were again in retreat today.
US domestic rig count
rises again
For
the ninth week in ten, US domestic rig counts were up again, in spite of oil’s
fall. With oil still showing all the signs of sliding further into bear
territory, the number of small oil companies returning to the oil patch
continues to show slow but steady growth in spite of low oil, and it’s the
biggest bone that the OPEC dog has to contend with. Any discussion of talks
cannot happen, or round of cuts stick, without seeing any kind of return of the
power that US domestic resources holds.
With rising rig counts worldwide, OPEC runs the risk of losing their own
market-share, and thusly, their former world economic influence. Any gap in
production will be quickly met with industry response.
US inventories
Last week’s US inventory
report out of the Energy Information Administration showed a surprise draw
against gasoline inventories of 4.3 million barrels. While ample gasoline
inventories remain well over the five year average, a surprise draw was enough
to bolster speculators into boosting gasoline prices this week.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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