Price changes for Thursday, May 18, 2017

Hi to all,

Here are the final numbers for this Thursday's price changes:

*Heating and stove oils show an added 2.2 cents a litre....
*Diesel fuel shows an added 2 cents a litre up, and...
*Gasoline shows an added 3.1 cents a litre.

Market Highlights

Gasoline set to increase as driving season approaches

The start of the summer driving season usually begins around the US Memorial Day holiday south of the border. While still a few days away, speculators are hoping to see an increase in gasoline demand this summer, and that's part reason why yours truly is seeing an increase in all spot prices across the board this week.

Saudi’s and Russia extend their cuts agreement

There is also breaking news from yesterday that showed OPEC member Saudi Arabia and non-OPEC producer Russia have signed on to an extension of their cuts agreement signed last November.
That agreement to maintain the same level of cuts extends now into March of 2018.
While it boosted oil prices in recent days, the promise of a powerful pickup in US domestic production (and production in other countries) should be enough to tip the scales back in a few days to dropping oil prices once again.
OPEC has to be careful.
While they may be fighting to bolster prices, they are again kicking open the door for a return of a more resilient US oil industry.

OPEC is set to meet officially May 25^th in Vienna where cuts are on the agenda.

Sorry I didn't publish last week as I was in Cuba. Nice time away and I didn't even check the price at the pumps!

That's it for this week!

Regards,

George Murphy

Twitter @GeorgeMurphyOil