Hi to all,
Here’s what I have for price changes for Thursday, December 22,2016.
*Heating and stove oils show an increase of 1.2 cents a litre.
*Diesel fuel shows an increase of 1.6 cents a litre, and
*Gasoline shows an increase of 2.8 cents a litre.
US rotary rig count increases
US drillers are heading back to the oilfields, and OPEC should be worried...
While US drilling numbers increasing at a steady pace, this week increasing by another 12 rigs from last week’s increase of 26, others are simply waiting to get “back in” after they get a sense of market and oil price stability. OPEC should show some sense of worry, knowing that there was going to be a measured response against cuts.
US domestic oil output shows a sharp spike upwards
US domestic oil output also showed a marked response on the heels of last week’s announced cuts. As predicted would happen, US domestic production increased by another 99,000 barrels a day just in the first five days after the announced cuts and the Saturday agreement between OPEC and non-OPEC producers.
One would easily interpret that increase with an immediate impact on prices. While not an extremely large increase, it’s still early in the going. Expect to see more players to enter the market with oil up a rough $2 US on the week.
The most likely reason for the spike in output was the simple fact that fields which had initially been shut down as a result of the June ’15 price collapse. With oil production hitting 9.6 million barrels that month, US domestic has just hit 8.797 million barrels a day since in comparison.
But OPEC should be aware that there a re a lot of closed off spigots that can be turned on real quick if oil gets much higher.
That’s it for this week, with all this coming from me with a “Merry Christmas” along with the “warmest” of holiday wishes!