Hi to all,
Here’s what I have for this
week’s price changes. Keep in mind that winter blending may throw off the
Heating/stove and Diesel numbers from the actual that may occur:
*Heating and stove oils show
an increase of 9/10ths of a cent a litre.
*Diesel shows an increase of
1.1 cents a litre, and...
*Gasoline shows a drop of
7/10ths of a cent a litre.
Market highlights
US shale having an impact
Recent
inventory reports seem to confirm what was predicted months ago, that the US
shale and tight oil industries would be quick to respond to any cuts implemented
by OPEC and some non-OPEC producing countries. With growing inventories, particularly
the last three weeks, oil prices have seen more downwards pressure as
inventories have continued to grow.
Pressure is also coming off gasoline as
demand has tailed off, leaving gasoline inventories with growth twice as much
as what was expected.
US rig counts also continue to climb as
investors of small-time producers have entered back into the markets to fill
the gap left by the November cuts.
API report shows a massive build in inventories
The American Petroleum Institute, an
industry related group released their weekly inventory report which should be
quite alarming, if you’re an OPEC member.
The group’s report showed a massive crude
inventory increase of 14 million barrels this evening which should impact
prices in electronic trading before the market open.
Gasoline inventories also showed an
increase of 2.9 million barrels, well more than double market expectations,
that should impact spot prices for gasoline over the next week.
A clearer picture of what is happening out
there will be drawn from the US Energy Information Administration’s own
inventory report which will be released around 12 noon NST.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
No comments:
Post a Comment