Hi to all,
Here's what I have for this week's
price changes:
*Heating and stove oils to drop by 2.5 cents a litre.
*Diesel fuel to drop by 2.6 cents a litre, and...
*Gasoline to drop by FOUR cents a litre.
*Diesel fuel to drop by 2.6 cents a litre, and...
*Gasoline to drop by FOUR cents a litre.
Market highlights
OPEC breaks its own production
freeze
The fact that Libya and Nigeria were exempted from the OPEC cuts agreement and it's extension a month ago was telling on what was thought to be two countries in a rough position as far as stability goes, and they are. However, both Libya and Nigerian production has suddenly come back, rather unexpectedly to OPEC I may add, to throw further doubt into the world oil glut situation.
Both Libya and Nigeria combined to push overall OPEC production up by another 330,000 barrels a day during May month.
That has helped to moderate prices over the last week, and acquisition costs of oil have come down as well to reflect the benefits to consumers.
The fact that Libya and Nigeria were exempted from the OPEC cuts agreement and it's extension a month ago was telling on what was thought to be two countries in a rough position as far as stability goes, and they are. However, both Libya and Nigerian production has suddenly come back, rather unexpectedly to OPEC I may add, to throw further doubt into the world oil glut situation.
Both Libya and Nigeria combined to push overall OPEC production up by another 330,000 barrels a day during May month.
That has helped to moderate prices over the last week, and acquisition costs of oil have come down as well to reflect the benefits to consumers.
Gasoline demand weaker than usual?
Gasoline inventories, according to the US Energy Information last week, climbed instead of falling during one of the driving season's busiest times for speculators.
Weaker refinery capacity also showed the markets that with refinery production dropping, refiners were still able to add gasoline to the overall inventory, casting further doubt on what demand there will be for product heading into the depths of summer.
As previously forecast here, there's still some pressure to the downside for gasoline, but I'm keeping an eye to the refiner capacity number to see if refiners throttle back on output in a move to support prices for the next little while.
Already a sign that there may be trouble for the speculator out there if that indeed happens!
Gasoline inventories, according to the US Energy Information last week, climbed instead of falling during one of the driving season's busiest times for speculators.
Weaker refinery capacity also showed the markets that with refinery production dropping, refiners were still able to add gasoline to the overall inventory, casting further doubt on what demand there will be for product heading into the depths of summer.
As previously forecast here, there's still some pressure to the downside for gasoline, but I'm keeping an eye to the refiner capacity number to see if refiners throttle back on output in a move to support prices for the next little while.
Already a sign that there may be trouble for the speculator out there if that indeed happens!
That's it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
Twitter @GeorgeMurphyOil
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