Hi to all,
Here’s what I have
for this Thursday’s price changes:
*Heating and stove
oils to drop by 2.6 cents a litre.
*Diesel fuel to
drop by 2.7 cents a litre, and...
*Gasoline to drop
by 1.4 cents a litre.
Market highlights
Saudi Arabia turns
on the taps
A week ago it
wasn’t thought possible that we would see a dramatic reversal in the markets as
Saudi Arabia was found to have already broken it’s deal with fellow OPEC and
non-OPEC producing nations. But according to last week’s production numbers,
the Saud’s produced more oil onto the markets that helped send oil prices down.
Saudi Arabia produced more than 10.7 million barrels a day in June month,
according to figures released by OPEC, and all in spite of reaching an accord
with other members to add just 600,000 barrels a day to the markets in an
“effort” to prevent prices from rising. That news played into the markets
through late last week.
Also adding to the downwards pressure on prices was the news out of Libya that
showed an uneasy peace agreement that would start exports from the African
country amounting to 700,000 barrels a day, just shy of half its original
production, a move that forced Brent prices lower.
Trump adds weight
Meanwhile, on this
side of the world, Donald Trump talked about the possibility of releasing crude
oil to the markets from the U.S strategic petroleum reserve, a move that some
see as a quick attempt to get other OPEC members to fall in line with adding
production. The reserve contains a rough 660 million barrels of oil held in the
event of use during a national emergency.
The idea weighed heavily on the markets this week as oil lost ground, WTI
losing about $6 US over the past week and Brent dropping by close on $7 US.
U.S inventory
report largely ignored
In spite of a U.S
Energy Information Administration report that saw a draw of over 12
million barrels, oil prices moved the opposite way as concerns over
shortages disappeared in minutes.
The report also showed a balance between refiner capacity of 96.7 percentage
points and a drop in gasoline inventories of just 700,000 barrels of product.
That’s it for this
week!
Make it a good
one...
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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