Tuesday, August 16, 2016

Price changes for Thursday, August 18, 2016


Hi to all,



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



*Heating and stove oils show an added 3.2 cents a litre.

*Diesel shows an increase of 2.7 cents a litre, and...

*Gasoline shows just a 1/10th of a cent a litre increase.



Market highlights



As oil prices rise, affects can be seen and are all the focus of the update this week...



With OPEC talking about taking another extraordinary measure to freeze production, speculators are betting that, this time, the move to impact on the abundance of oil in the markets will work this time.

    *OPEC will meet in Algeria on September 28th to discuss the possibility of a production freeze. Other non-OPEC producers like Russia, have shown an interest in cutting back or freezing production in an effort to support oil prices and increase revenues.

    *Oil prices have increased a rough 12 percentage points since the last price setting, an increase of $5.65 over the last week as a result.

     *The Canadian dollar has increased in value against the US greenback, rising close to three cents from $1.30.6 cents to today’s noon rate of $1.28.6 as oil prices have increased.

     *What is obvious by the numbers this week is a market focus on distillate fuels that have shown a major increase this week, and numbers that are also pointing towards a potential  increase again for next week ahead o the fall season.

      *With attention now off the gasoline selling season in the US, gasoline numbers are showing a barely visible increase at the pumps this week. You can see where refiners have been losing in the game this past summer with gasoline spot prices remaining relatively steady against the increase in oil prices this week.



I’ll leave it at that for this week!



Regards,



George Murphy

Twitter @GeorgeMurphyOil

2 comments:

nyi said...

AGAIN I ASK YOU... why is it that when oil drops we do not see a satisfactory drop at the pumps. Though oil goes up and VOILA .... instant rise at the pumps. So you also mention when gas goes up a factor is the Canadian Dollar dropping. It's up but with no effect.

The poor people of this province are mesmerised by the BS reasons given week after week. When will it end? I'll answer that: It won't

George said...

I do this of my own volition and don't get renumeration for what I determine are the reasons why the markets do what they do, just in case you didn't know...

Oil was way up this week, and yet, no appreciable change in gas prices...as predicted here.

As for why hasn't dropped?

Remember that the present government has just tagged everyone with an added twenty cents in taxes at the pumps and that's why prices are so high...Halifax, to note, right now is right where we would be at the pumps if these taxes didn't hit.

I can't get any simpler in my interpretation of what happens from week to week, but all I can say is that "I try" to keep it simple.

If you can't understand it, then I'm sorry. You'll have to do your own research...

Regards and thanks for the note!

George