Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oils to drop by 1.1 cents a litre.
*Diesel fuel to decrease by 1.3 cents a litre, and...
*Gasoline to decrease by 1.6 cents a litre.
As predicted...Prices start a retreat
A few weeks ago, I presented a scenario that I have seen in other sessions where gasoline and oil prices rose ahead of the U.S Memorial Day weekend.
I am also on record as saying that the Memorial day weekend was often the peak that I have seen outside of the months of August and September where “Hurricane Season” reigns and has upwards influences on prices.
Well, we’re here, but not to the degree as in other years, mainly as a result of the Canadian dollar losing further ground against the U.S greenback. So far this past week, since the end of the last pricing session, the “Canuck Buck” has lost close on 2.5 cents against the U.S dollar.
With the Canadian dollar being an important factor in working up my numbers, it has become evident that we’re going to see further slippage in the dollar, which means a slower return to lower prices, also what I knew was going to happen.
What we should all not tolerate is Canadian consumers being left to susceptibility of a lower dollar that will start to cost us more for the goods coming back to us as consumers. While fuel prices may be in a slow recovery in prices to the consumers benefit, we may be paying the price in higher costs for consumer goods before transport costs are even figured in to the equation...
Right now, the disparity between the Canadian dollar and the U.S dollar at par is costing consumers a rough 35 cents a litre at the pumps...
Here’s hoping that in the coming days refined product prices take a steeper hit...
Russia and OPEC reinstate production levels
It was eighteen months ago almost that both OPEC and non-OPEC nations met and agreed to oil production cuts that would help “re-balance” the market by absorbing the world glut of oil.
If you believe what is coming from the groups involved, then we may be very close to seeing an added 1.8 million barrels a day of capacity added to the oil markets once again, a move in the markets that helped to spark a retreat in oil prices and refined commodities.
In November of 2016, both OPEC and non-OPEC producers agreed to cut back on production starting in early 2017 to help support oil prices, a deal that was renewed later in February 2018.
OPEC will next meet on June 22nd, but it seems a moot point now as word has gotten out to other OPEC members to pick up on production again, a trend that may very well be picked up on as OPEC production data for May month comes out next week.
That’s it for this week!