Good evening,
Here's what I have for this week's price changes:
*Heating oil shows an increase of 1.5 cents a litre....
*Diesel fuel shows an increase of 1.2 cents a litre, and...
*Gasoline shows an added 2.4 cents a litre.
Here's what I have for this week's price changes:
*Heating oil shows an increase of 1.5 cents a litre....
*Diesel fuel shows an increase of 1.2 cents a litre, and...
*Gasoline shows an added 2.4 cents a litre.
Market highlights
US Inventory report impacts prices
Last Wednesday's US EIA inventory report certainly was a model for how speculators can jump all over the tiniest of facts.
The inventory report from last week gave everyone a good read on how much the markets can be influenced once some "certainty" is weighed against the truth.
Last Tuesday, the last day of the regulatory session, industry reports were released to the markets stating that US inventories were impacted according to the industry report, in a negative way. Numbers for oil were well down. But the markets the next morning didn't exactly run away out of control on their news.
Enter Wednesday noon when the US EIA inventory read came out for the week before.
Facts are facts, and in the face of a drop in both gasoline and crude oil inventories, oil shot up a good $2 plus over the next few hours and stayed there for the rest of the day.
Refined commodity prices also showed a rapid increase right behind oil.
But expect a retreat in prices starting into this week's market trading that should impact consumer prices set for next Wednesday.
While Hurricane Hermine shut down most imports into the Gulf of Mexico last week that turned oil prices up, then the opposite will be true for tomorrow's report. That one should show a massive build in inventories, those same barrels that didn't make it to shore the previous week that put the screws to prices for us this week.
The numbers may be up this week, but they're not likely to last as the reality of an over-supplkied world full of oil once again takes hold of the oil markets.
The numbers may be up this week, but they're not likely to last as the reality of an over-supplied world full of oil once again takes hold of the oil markets.
That's it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
US Inventory report impacts prices
Last Wednesday's US EIA inventory report certainly was a model for how speculators can jump all over the tiniest of facts.
The inventory report from last week gave everyone a good read on how much the markets can be influenced once some "certainty" is weighed against the truth.
Last Tuesday, the last day of the regulatory session, industry reports were released to the markets stating that US inventories were impacted according to the industry report, in a negative way. Numbers for oil were well down. But the markets the next morning didn't exactly run away out of control on their news.
Enter Wednesday noon when the US EIA inventory read came out for the week before.
Facts are facts, and in the face of a drop in both gasoline and crude oil inventories, oil shot up a good $2 plus over the next few hours and stayed there for the rest of the day.
Refined commodity prices also showed a rapid increase right behind oil.
But expect a retreat in prices starting into this week's market trading that should impact consumer prices set for next Wednesday.
While Hurricane Hermine shut down most imports into the Gulf of Mexico last week that turned oil prices up, then the opposite will be true for tomorrow's report. That one should show a massive build in inventories, those same barrels that didn't make it to shore the previous week that put the screws to prices for us this week.
The numbers may be up this week, but they're not likely to last as the reality of an over-supplkied world full of oil once again takes hold of the oil markets.
The numbers may be up this week, but they're not likely to last as the reality of an over-supplied world full of oil once again takes hold of the oil markets.
That's it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
No comments:
Post a Comment