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.
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!