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.
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!