Hi to all,
Here's what I have for this week's
price changes, keeping in mind that the winter blending may throw off Diesel
and Heating/stove oils a little from the actual that may occur.
*Heating and stove oils show a drop
of just 6/10ths of a cent/Litre....
*Diesel shows a drop of a penny, and...
*Gasoline shows a drop of 1.8 cents at the pumps.
*Diesel shows a drop of a penny, and...
*Gasoline shows a drop of 1.8 cents at the pumps.
Market highlights
US rig count shows an increase
On the heels of OPEC and non-OPEC countries getting together in Vienna, Austria last week for their production cut meetings, those who joined in cuts should not be surprised to fins a very responsive US domestic oil industry begin to kick things into high gear.
The US rig count, as I suspected, increased by double digits last week, with the US drilling industry adding 27 new rigs piercing grounds for oil.
As the numbers suggest, that raises the stakes in a game of competition between US domestic production and it's ability to try and fill a gap in almost 1.8 million barrels in cuts by both OPEC and non-OPEC producers last week.
Numbers on exactly how much oil will be added to US domestic production will probably keep increasing to a point that it could negate OPEC cuts.
After all, it's not just the US that they have to worry about now.
Other countries left to the sidelines with the initial fall in oil, will also be quick to respond. Equador was another country left at a high water mark before prices fell, so it should be widely expected that others will respond in kind to a hole left in the markets for product.
On the heels of OPEC and non-OPEC countries getting together in Vienna, Austria last week for their production cut meetings, those who joined in cuts should not be surprised to fins a very responsive US domestic oil industry begin to kick things into high gear.
The US rig count, as I suspected, increased by double digits last week, with the US drilling industry adding 27 new rigs piercing grounds for oil.
As the numbers suggest, that raises the stakes in a game of competition between US domestic production and it's ability to try and fill a gap in almost 1.8 million barrels in cuts by both OPEC and non-OPEC producers last week.
Numbers on exactly how much oil will be added to US domestic production will probably keep increasing to a point that it could negate OPEC cuts.
After all, it's not just the US that they have to worry about now.
Other countries left to the sidelines with the initial fall in oil, will also be quick to respond. Equador was another country left at a high water mark before prices fell, so it should be widely expected that others will respond in kind to a hole left in the markets for product.
I'll leave it at that for this
week!
Regards,
George
Twitter @GeorgeMurphyOil
Twitter @GeorgeMurphyOil
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