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Wednesday, November 23, 2016

Price changes for Thursday, November 24th, 2016

Hi to all,

Here's what I have for this week's price changes, with all data in:

*Heating and stove oil show an increase of 2.0 cents per litre for Thursday....
*Diesel shows an added 2.6 cents a litre, and...
*Gasoline shows an increase of a penny a litre.

Market highlights

OPEC keeps talking
      OPEC members are seemingly coming close to an agreed set of cuts to production and that seems to have spurred prices for oil upwards over the last few days. But what I'm watching for is OPEC member compliance with a round of cuts that still makes me not believe that they ever will take hold and help support the price of oil.
      Consensus I am hearing is OPEC leaning toward a possible four to five percent cut in overall output that will bring OPEC total daily production down a rough 1.5 million barrels a day.
      If anything, oil prices may be supported for a very short timeframe, and that's when I believe two things will happen: US domestic production will kick in, and OPEC members will take advantage and cheat on those self-imposed cuts.
      Rumours in the markets have OPEC allowing fellow members Iraq and Iran to produce at present output and not cut production in order to have them sign on to a cuts agreement. The deal set to be signed at the next meeting of OPEC November 25th will be a "make or break" deal for the organisation and may be the hedge-point by which OPEC stands or falls.

I'll leave it at that for this week, but I'll be watching the oil news with much interest this weekend!

I'll keep you all up to date.


George Murphy
Twitter @GeorgeMurphyOil

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