Hi to all,
Here’s what I have
for price changes for this Friday:
*Heating/stove oils
show an increase of just 3/10ths of a cent a litre.
*Diesel fuel shows
no changes, and...
*Gasoline shows a
net drop of 4.3 cents a litre. While markets traded up by 7/10ths of a cent
this week, government is dropping another portion of the gas tax it added last
year. The 4.3 a litre down accounts for that.
Market highlights
Markets steady as
they wait for OPEC and Russia movement
Oil prices remained
relatively stagnant over the past week as observers keep a close eye on what
OPEC will do after this week’s meetings.
Markets are stepping lightly as OPEC strives to come to a decision on possible
further cuts and further participation by Russia and Azerbaijan in an extension
to production cuts by non-OPEC producers.
What
is interesting to see, or hear, in all this is how muted that conversation has
become about Russia’s further participation in the possibility of extending
those cuts past next March 2018. They haven’t come out directly and said they
are willing to extend them.
Russia itself has that possibility of losing some market share to growing U.S
domestic production that has hit new heights to the point that the U.S has also
started to export into the world market, replacing lost production from OPEC
and non-OPEC producers.
U.S domestic
production continues growth
U.S domestic
production has continued to outpace even Energy Information Administration
estimates as a record 9.652 million barrels a day came out of shale areas south
of the border over the last week. With oil still supported at $63 US for Brent
and $58 US West Texas Intermediate, some small producers are getting back in.
While growth is at a record, some slowing has occurred as producers are being
overly cautious in getting back in until they have their fiscal end of things
tightened up. And while drill-bits are getting back in the ground, some are
saying that with a booming U.S economy, other areas of the economy are taking
up valuable people resources before the oil industry can get to them. Once
bitten by a recent industry collapse, some aren’t so eager as the company
themselves to get back in.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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