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.
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.
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!