Hi to all,
Here’s what I have
for price changes for this Thursday:
*Heating and stove
oils to drop by 2/10ths of a cent a litre.
*Diesel fuel to
drop by 2/10ths of a cent a litre, and...
*Gasoline to drop
by 7/10ths of a cent a litre.
Market highlights
Canadian dollar
keeps slipping
The Canadian dollar
lost almost three cents against the U.S greenback as Trump’s tariffs on this
country weighed on our currency.
That,
higher interest rates and a strong U.S unemployment number of 3.8 percent
reported last week has thrown strength behind the U.S greenback raising it to
levels against our currency not seen in a few years. The fall of the dollar has
cost consumers about 2.5 cents at the pumps this week alone.
OPEC meeting June
22nd on production cuts
Both OPEC and
non-OPEC members will meet in Vienna, Austria to discuss the return to the
markets a 1.8 million barrel a day cut to production that was meant to erase a
perceived glut in oil stocks.
OPEC
now wants to add in their end of cuts amounting to 1.2 million barrels first
announced in November of 2015. Russia and Azerbaijan also added to the overall
production cut by adding 600,000 barrels to the move.
But some member nations of OPEC aren’t so hasty in adding the full 1.2 million.
Some are seeking an addition of between 300,000 barrels and 600,000 barrels as
a more positive move to support oil, while Saudi Arabia worries about the loss
of Venezuelan production as a need to add the full 1.2 OPEC end of production.
The ‘back and forth’ over what the actual addition will be has added both up
and down volatility to the oil markets this past week.
We’ll find out on Friday what they will do.
U.S inventory
report
U.S domestic
production increased by another 100,000 barrels a day to hit 10.9 million
barrels a day as higher prices have led to new rigs back in the oil patch.
U.S crude oil saw a drop in supplies by 4.1 million barrels and gasoline also
dropped by 2.1 million barrels as consumers started buying again as prices fell
at the pumps.
Refiner capacity was gauged at 95.7 percentage points as refiners saw good
margins.
That’s it for this
week!
Regards to all,
George Murphy
Twitter:
GeorgeMurphyOil
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