Hi to all,
Here’s what I have for this week’s price changes.
Keep in mind winter blending as that mix may throw off the distillate numbers somewhat, and also that there is EXTREME volatility in the numbers that could be pointing the numbers lower than what I have here now.
*Heating and stove oils show a drop of 8/10ths of a cent a litre.
*Diesel fuel shows a drop of 9/10ths of a cent, and...
*Gasoline shows a drop of 1.3 cents a litre.
OPEC cuts ineffective?
Talks of a slowing world economy not only sent the stock markets into a volatile condition the last few days, but oil is also starting to pay the price on a possible slowdown.
With less demand for oil in a slowing economy, the prospects of absorbing a glut worldwide is becoming doubtful. Growing shale production in the U.S has seeded doubts that oil prices will have support as more oil is seen to be added to the markets. The last two days have seen oil retreat with even refined prices starting to trade much lower right along with it, possibly to reflected at the pumps over the next two weeks.
The likelihood of cuts being effective is also being outweighed by word from Russia that oil production has increased there, even with the word that the country was keen to join OPEC in making their last round of cuts to oil production.
API inventories up
The American Petroleum Institute also released their inventory data late this evening that also showed a moderate build of 3.5 million barrels in overall U.S crude inventories, along with building inventories in Cushing, Oklahoma where West Texas Intermediate is traded. Oil was up there by just over a million.
Inventories of gasoline were also said to be up just over 1.7 million barrels nationwide.
All eyes will be on the Energy Information Administration inventory report due shortly after 12:30PM NST for further word on oil inventory, as well as any growth in U.S domestic production figures.
That’s it for this week!