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!