Price changes for Thursday, March 9, 2017

Hi to all,

Here’s what I have for this week’s price changes:

*Heating and stove oil to drop by 6/10ths of a cent a litre.

*Diesel fuel to drop by 7/10ths of a cent, and...

*Gasoline to drop by 1.6 cents a litre.

Market highlights

API reports another huge crude inventory build

The American Petroleum Institute recorded yet another huge inventory build, with crude oil stocks growing another 11.6 million barrels to the domestic stockpile.

     Gasoline inventories were reported down in excess of five million barrels, while distillate stocks were also down by 2.9 million barrels.

      All eyes will be on the US Energy Information Administration’s report due to be released around noon Newfoundland time.

OPEC meeting in May

While it’s a long way away yet, it could be the key date that signifies whether OPEC’s member states will carry forth with production cuts, or whether they will answer to the massive growth in U.S domestic production. The US Energy Information Administration is already predicting that US domestic will hit 9.7 million by the end of fiscal 2018. The US has already added half of the total cuts made by OPEC since the end of November and could set itself up to meeting the 1.2 million gain in domestic production within the next four months if oil stays close to $55 US a barrel.

     Question to be answered in May then? Will US domestic production spark OPEC members into opening the floodgates to knock US production again, or does OPEC answer with more cuts?

      For now, it’s “wait and see”.

     That’s it from me this week!

Regards,

George Murphy

Twitter @GeorgeMurphyOil