Tuesday, May 01, 2018

Price changes for Thursday, May 3rd, 2018


Hi to all,



Here’s what I have for this Thursday’s price changes:



*Heating/stove oils to increase by 8/10ths of a cent a litre.

*Diesel fuel to increase by 1.7 cents a litre, and...

*Gasoline shows an increase of an even penny.



Market Highlights



Peak pricing-for now?...

    * Consumers in Newfoundland and Labrador, and New Brunswick can expect to see a slight increase at the pumps this week as prices look to be peaking after rising on  increased Middle East tension and a falling Canadian dollar.

     * Markets are still playing on fears that there will be a further outbreak of violence in the Middle East that may lead to some supply disruption, but a possible break in the Iran nuclear deal by the U.S after the May 12th deadline to get a new deal in place on Iran nuclear programming had some speculators running for the shade of the strong U.S greenback rather than oil.


      *Accordingly, it seems that any fears of a U.S pull-out from the Iran nuclear deal has stoked some fears of sanctions being placed on Iran, but it is unknown at the time if sanctions would mean an imposition of a crude oil export cut. If that happens, oil could rise again.


      * The Canadian dollar has lost another 1.5 cents on average against the U.S dollar this last session with the Canuck Buck hitting $1.2867 against it’s stronger neighbour.


      *U.S crude inventories signaled a gain last week of 2.2 million barrels while gasoline inventories increased by 800,000 barrels on 90.8 per cent capacity.


      *U.S domestic production increased by 46,000 barrels a day as domestic production again showed an increase10.586 million barrels a day. The growth is seen as a little weak considering the price of oil and still shows me a “reluctance” for anyone to jump into the domestic production scene.



That’s it for this week!



Regards,



George Murphy

Twitter @GeorgeMurphyOil  

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