Hi to all,
Here's what I have for this week's price changes. Keep in mind winter blending that may throw off the numbers a little.
*Heating/stove oils show an added 7/10ths of a cent a litre....
*Diesel shows an increase of a penny a litre, and...
*Gasoline shows an increase of 8/10ths of a cent a litre.
Here's what I have for this week's price changes. Keep in mind winter blending that may throw off the numbers a little.
*Heating/stove oils show an added 7/10ths of a cent a litre....
*Diesel shows an increase of a penny a litre, and...
*Gasoline shows an increase of 8/10ths of a cent a litre.
Market highlights
US rig count continues upwards
With the cuts instituted by OPEC and non-OPEC producers at the end of November 2016, along with it came the promise of small shale producers in the US and elsewhere getting back into the market.
And get back they did, and at such a pace that OPEC countries may have to re-think cuts they made, either cutting deeper or starting another oil price war to finally knock down the competition.
Last week, numbers for rigs getting back to work increased again, this time by five, while US domestic oil production hit 9 million barrels, an added 600,000 barrels of crude a day since the first week of October.
Rigs increased by 145 additional units in the field since that same October.
Gasoline finally shows a draw
US inventories of gasoline showed a modest drop in inventories last week with refiner capacity hitting a record low for the year of 84.4% of total US production.
While refineries may be down for summer maintenance to refine more gasoline at the end of winter, it remains to be seen where gasoline prices could head when capacity picks up. Even though demand has remained below seasonal levels as compared to other years, if capacity picks up in the next couple of weeks before present inventories are drawn down, then we have the set-up for lower prices at the pumps.
No demand means lower prices in the hope that consumption picks up.
It's a ticklish situation refiners and Big Oil finds itself in.
That's it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
US rig count continues upwards
With the cuts instituted by OPEC and non-OPEC producers at the end of November 2016, along with it came the promise of small shale producers in the US and elsewhere getting back into the market.
And get back they did, and at such a pace that OPEC countries may have to re-think cuts they made, either cutting deeper or starting another oil price war to finally knock down the competition.
Last week, numbers for rigs getting back to work increased again, this time by five, while US domestic oil production hit 9 million barrels, an added 600,000 barrels of crude a day since the first week of October.
Rigs increased by 145 additional units in the field since that same October.
Gasoline finally shows a draw
US inventories of gasoline showed a modest drop in inventories last week with refiner capacity hitting a record low for the year of 84.4% of total US production.
While refineries may be down for summer maintenance to refine more gasoline at the end of winter, it remains to be seen where gasoline prices could head when capacity picks up. Even though demand has remained below seasonal levels as compared to other years, if capacity picks up in the next couple of weeks before present inventories are drawn down, then we have the set-up for lower prices at the pumps.
No demand means lower prices in the hope that consumption picks up.
It's a ticklish situation refiners and Big Oil finds itself in.
That's it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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