Hi to all,
Here’s what I have
for this Thursday’s price changes:
*Heating and stove
oils show a half cent a litre increase.
*Diesel fuel shows
an increase of 7/10ths of a cent a litre, and...
*Gasoline shows an
increase of 2.3 cents a litre.
Market highlights
Demand for world
oil rising?
Some hints in the
news this week may bring some a little hope for rising oil prices, but again
it’s the potential influence of U.S domestic shale production that keeps things
a little tempered.
News reports out of China are implying a growing demand again as their economy
ramps up, but it’s their neighbor to the south, India, that seems to be drawing
more attention as the Asian country seems to be importing more oil that usual
to meet its growing oil refining sector.
Indian imports of oil have reportedly hit close to 4.8 million barrels a day
into a country that only a few short years ago, was distantly thought of as a
potential reason for increasing world demand and a still very young but growing
economy.
U.S rig count rises
again
The rig count south
of the border is starting to show more signs of growth in what may be the first
real sign of a response to rising world oil prices.
The Baker Hughes rig count this past Friday saw an additional fifteen rigs go
back to work with ten of those specifically searching for oil. The other five
pursued natural gas, but no doubt would have oil as a residual to their
production.
With oil prices hitting $70 US for Brent this week and $64 US for West Texas
Intermediate, there’s plenty of room for speculation.
But the rig count may itself be the reason why we may yet see a more cautious
market approach to the $70 US a barrel level. A second week of robust rig count
growth may be enough to signal a retreat after this Friday as it could be seen
as a sign of growing U.S output and a hedge against OPEC production cuts.
That’s it for this
week!
Regards,
George Murphy
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