Hi to all,
Here’s what I have for this week’s price
changes, keeping in mind winter blending which may throw off the distillate
numbers somewhat.
*Heating and stove oils show a drop of
two cents a litre.
*Diesel fuel shows a drop of 2.7 cents a
litre, and...
*Gasoline shows a drop of 3.2 cents a
litre.
Media release
Conception Bay South, NL, January
10,2017- “It may be the start of a decline in prices that, if market sentiment
sticks around, could lead to steeper drops in price in the next few weeks.“
That’s according to George Murphy, group researcher for the Consumer Group for
Fair Gas Prices.
“Speculators for the last six weeks have
played up oil prices with the fact that OPEC has stepped in and made substantial
cuts to production, but the fact that they left a gaping hole for other
producers to step into, may very well be coming back to bite them. As predicted
would happen, smaller US domestic producers seem to be coming back into the
market, and that is beginning to show in the U.S rig count and worldwide.
“It’s not just from the U.S that I am
seeing a quick return to the markets. Worldwide, the rotary rig count increased
last week by another 94 rigs, sparked by restarts in Canada and other centres where
shale resources were previously being explored. World-wide, that amounts to
1772 rigs operating, with last week’s return of 94 rigs, the highest increase
week-on-week that I have seen.
“Doubts about the ability of oil to
maintain present pricing levels are permeating the markets, at least for the
time-being, and that’s the basis for some relief for consumers this week. OPEC
member compliance is also an important factor with both Libya and Iraq exports
beginning to climb.
“The Canadian dollar also is a factor
this week, rising in value against the U.S greenback in the face of falling
oil-at least for the time-being. The Canuck Buck has gained almost three cents
in the last two weeks as a result of a mostly positive Canadian jobs report
last week. A rising Canadian dollar against the U.S greenback has the tendency
to drop prices further.”
-30-
For more information, contact:
George Murphy
Twitter @GeorgeMurphyOil
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