Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oils to drop by 8/10ths of a cent per litre.
*Diesel to drop by
an even penny, and...
*Gasoline shows a
drop of just 6/10ths of a cent.
Market highlights
Another closure of
the Columbian pipeline disrupts gasoline output
An explosion and
fire has again closed the Colonial pipeline that runs from the US Gulf of
Mexico refining and export areas to the US northeast, causing a sharp increase
in gasoline spot prices on the New York mercantile exchange today that may not
be felt by Newfoundland and Labrador consumers until they hit the pumps next
week IF the line isn’t repaired soon.
Before today, numbers showed a small decrease of a penny a litre, but the fire
and explosion that took one life has resulted in a sharp increase in gasoline
prices as a result of a “supply disruption”.
“We’ll see how it goes in the markets over the next couple of days, but prices
are already showing close to a four cent a litre increase could happen if
today’s closing prices carry through the week”.
Repairs are estimated to take until Saturday at the earliest to bring the line
back into full operation again.
OPEC deal could
fall apart?
OPEC’s deal to make
a cut to production may already be under threat as Iran and now Iraq, are
expressing dissatisfaction with having to institute cuts before they reach
maximum “pre-war” production levels.
That played into the markets this week allowing Brent prices to drop almost $3
US a barrel to close today at $47 and change.
Speculators are also keeping in mind that the Saudi government is looking at
raising cash through the sale of stock in the government owned Saudi Aramco oil
company, saying the only reason why the Saudi’s wanted a freeze was to raise
the share price and increase the government take.
In the meantime, OPEC meets again at the end of this month to formally
implement the limited production agreement.
Food for thought...
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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