Hi to all,
Here’s what I have
for this Thursday’s price changes, and all a little early as a result of
markets being closed tomorrow as a result of the U.S Independence Day holiday:
*Heating and stove
oil show an increase of 2.7 cents a litre.
*Diesel fuel shows
an added 3.1 cents a litre, and...
*Gasoline shows an
added 2.7 cents a litre at the pumps.
Consumers to see an increase at the pumps
for the first time in weeks
The numbers are in
early as a result of the US markets being closed tomorrow as a result of the
U.S Independence Day holiday, but even the holiday south of the border isn’t
going to go the trend of the last few weeks with price drops.
On the contrary...
“It’s almost
strange to see it after the last couple of weeks drops at the pumps, but
consumers will see an increase at the pumps this week as gasoline demand starts
to match refinery output”. That news from George Murphy, group researcher for
the Consumer Group for Fair Gas Prices. “Last week saw a very slight draw on
gasoline inventories immediately ahead of the U.S holiday, and along with
rising oil, refined commodity prices also increased.”
“There are signs of
support for oil prices out there as both the U.S rig count was down for the
first time in twenty four weeks, and signs from the U.S Energy Information
Administration that domestic output last week dropped 100,000 barrels a day, a
sharp drop that comes as a sign that small producers in the shale fields may be
more susceptible to lower prices than what was first thought. This may have led
to ‘second thoughts’ to further investment in these projects, and that’s where
we started to see a contraction in oil output. Some speculators placed a ‘break
even’ point at $35 U.S, but investors started pulling out well before $45 US, showing
a weak bottom remains for shale resources and that the ‘break even ‘ point is
much higher. Long term projects have a distinct advantage against smaller
projects.
“In spite of the
news from OPEC member Libya of rising production and exports from the war-torn
country’s return to the markets, oil prices still saw some support as a result
of smaller shale simply not going to be able to attract the investment because
of high risk and low oil prices. It seems that OPEC cuts may read in the
markets again until oil rises to the point where small shale production can
attract investment again. The market pendulum has again swung in favour of OPEC
and other non-OPEC producers in it for the long term.
“On average, Brent
and WTI have increased the past week by $3 US a barrel with refined commodities
showing strength based on the increase to oil prices. It was only ‘natural’ to
see gasoline demand start to rise before the holiday in the U.S and we can only
hope that we can see the trend of low prices return for the rest of the
summer”.
-30-
For more
information, contact:
George Murphy
Twitter
@GeorgeMurphyOil
No comments:
Post a Comment