Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oil both show a drop of 1.3 cents a litre.
*Diesel fuel shows
a drop of 1.2 cents a litre, and...
*Gasoline shows a
drop of 3.3 cents a litre at the pumps.
Market highlights
Can OPEC hold it
together?
Questions surround OPEC in its ability to “keep the group together” in light of
recent news and data that shows some OPEC members have not been holding to
their end of agreed-upon production cuts the group made in late November.
While Saudi Arabia has cut back, their neighbours Iran and Iraq have been
pumping out extra in the bid to gain market-share and may very well be the
reason why in recent weeks, Saudi Arabia has been discounting product prices to
both Asian and European buyers.
If they continue to over-produce, it will itself bring doubts to the oil
markets whether the group can maintain, let alone extend a production cut that
was meant to support oil prices.
Two weeks of gas
inventory gain means a drop in prices
The last two weeks of gains in overall US gasoline inventories has resulted in
a further break for consumers on both sides of the border again this week.
US inventories of gasoline increased again last week according to the US Energy
Information Administration, this time by 3.7 million barrels.
This is the traditional time of the year that we see extra pressure on gasoline
inventories that usually results in increased prices to consumers as the U.S
Memorial Day holiday approaches
The next EIA inventory report gets released Wednesday noon NL time.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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