Hi to all,
Here’s what I have
for this week’s price changes, baring in mind that winter blending mat throw
off the distillate numbers slightly from the actual that may occur.
*Heating and stove
oils show a drop of 3.1 cents a litre.
*Diesel shows a
drop of 3 cents a litre, and...
*Gasoline shows a
drop of just 2/10ths of a cent a litre.
Market highlights
Focus off
distillate turning to gasoline
If you were a speculator in the distillate market, you didn’t make a pile of
money, but you didn’t really lose either. Both ways you look at it, prices were
moderate, even to some consumers.
But it’s time to pull out now, and as you do, you turn to the gasoline markets
where, hopefully, you’ll see a rise in demand as spring and early summer comes
on.
So, while consumers should start to see some expected drops in distillate
prices here into the summer, those same consumers begin to see some support for
gasoline: just part of the reason why no big drop in the gasoline markets this week.
But don’t expect too much pressure yet, mind you!
Until consumers see an uptick in demand, expect no immediate growth in gasoline
prices this summer. With near-record inventories of gasoline out there this
spring ahead of the switch-over from distillate to gasoline, there’s going to
be reason for concern for refiners and Big Oil when refineries begin turning
out more gasoline for consumption.
What’s bad for them though, is not necessarily a bad thing for consumers...
OPEC blinks
OPEC member Saudi Arabia reported today that they secretly increased production
upwards from January adding another 260,000 barrels a day to production.
The
Saudi’s produced 10.1 million barrels a day, from 9.8 million barrels a day in
January.
Now, if I were a betting man, I’d put my money on one simple reason: That U.S
shale has become a bigger influence on OPEC oil policy than anyone realised. My
guess is that, adding a little oil to the markets is an attempt to “taper off”
US growth in domestic oil and still allow them to survive.
It’s a “warning”...
What OPEC does in the next two months will be determined by what U.S domestic
in the next two weeks with domestic production figures when they are released
by the US Energy Information Administration.
That’s it for this week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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