Hi to all,
Here’s what I have
for price changes for this week:
*Heating and stove
oils show a drop of 1.6 cents a litre.
*Both Diesel and
Gasoline show a drop of 1.9 cents a litre.
Market highlights
Trump a nightmare
for the oil markets
Besides trying to
run a country, the U.S president has been throwing turmoil in the markets,
threatening tariffs at every turn. Latest on the list is China, with Trump
arguing his case that they have an imbalance with the Asian monster.
Not good for the oil markets however, as anticipated demand would show that
more oil would be needed for a burgeoning economy that has access to the U.S
market. The threat of tariffs saw oil fall and then steady through the week,
but a possible ease of the tariff argument later in the session helped support
oil prices. Those hopes were part reason why Brent prices hit $71 U.S in
trading today.
Word on U.S
inventories
Oil inventories
from the U.S Energy Information Administration proved to be bullish as the
department reported a draw on oil inventories of 4.6 million barrels.
Gasoline also showed a draw of 1.1 million barrels against a refiner capacity
of 93 percent.
U.S domestic production increased by 27,000 barrels a day to show the U.S producing
10.46 million barrels a day.
But with that number comes the question why domestic output has not increased
appreciably to the corresponding rise in oil prices. It could be caution, but a
lacklustre performance in the face of a rise in oil is also helping to support
oil prices as well.
If
there’s going to be a measured response, it may happen this week as the U.S rig
count increased by 11 rigs this week, which may be enough to temper oil prices
should their output come online.
Final word...
Still watching the
situation in the Middle East, particularly as it comes from Syria and the
Russian/U.S back and forth on the issue. Iran and Saudi Arabia are also still
in focus as the war in Yemen has also been making headlines this week.
There’s lots happening out there, and I’m trying to keep an eye to all of it!
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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