Hi to all,
Here’s what I have
for price changes for Thursday:
*Heating and stove
oil to increase by 1.3 cents a litre.
*Diesel fuel to
increase by 1.2 cents a litre, and...
*Gasoline to decrease
by 1.2 cents a litre.
From the markets
OPEC rethinks
demand forecast
OPEC is rethinking
it’s forecast for world oil demand and states in it’s release a factor one
would have suspected would make a worldwide impact before now: the electric
vehicle.
In it’s demand forecast, OPEC states a lower than expected oil demand because
of the electric vehicle and other outside oil producers.
Today also saw a report from the International Energy Agency that seemed to
confirm OPEC’s report that also calls for lower than expected world oil demand.
The
news today sent crude lower from it’s November 6th peak at $64 US a
barrel to today’s close around $61 US.
Traders begin to
worry over U.S domestic output
Traders are also
beginning to worry over the effect of slightly higher oil prices and what that
will do to stall the recent rise in oil prices.
It’s generally seen that with OPEC cuts to production and their initial effect
on the price, that there would be some sort of response as U.S small shale
producers headed back to the oil patch. Last week’s inventory report from the
U.S Energy Information Administration saw a huge build in production with an
added 67,000 barrels of oil added on to a record 9.62 million barrel a day
output.
News today also saw a drop in Saudi Arabian imports into North America with the
development of “closer” domestic sources.
Futures prices tell
a tale
With the province
getting some added revenue from higher oil, I saw fit to have a look at what
traders are thinking for the future with some of the contracts that are out
there.
For the final quarter of this year, expect $61 US and change as markets
rebalance.
Fiscal
2018 looks the same with oil (Brent) averaging $61 US, but this starts to drop
back towards $58 US through to fiscal 2019.
That’s it for me this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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