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.
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!