Hi to all,
Here’s what I have
for this week’s price changes:
- Heating and stove oils show a decrease of 6/10ths of a cent a litre.
- Diesel fuel shows an increase of 1/10th of a cent, and...
- Gasoline shows an increase of 1/10th of a cent a litre
Keep in mind that
my margin for error is 3/10ths of a cent.
Market highlights
Trump keeps pushing
buttons
While market focus
remained mostly on possible over-supply concerns, Donald Trump’s comments on
Iran to be cautious didn’t alarm the markets into raising prices-at least this
time out.
Speculators are still concerned with over-supply of the markets as Saudi Arabia
was reported to have extended production well past it’s own production levels
as Libyan crude also starts a slow return to the markets.
With Saudi Arabia producing close to 10.7 million barrels a
day in June month, Libya also started to send crude exports to European ports
at a steady 700,000 barrels a day, adding to the over-supply concerns.
Those concerns helped to keep Brent prices down to a rough $72 US a barrel this
past seven days.
End of the driving
season?
With the end of
July fast approaching, speculators are now starting to turn toward the
September buying contracts when focus starts to come off gasoline. With deliveries
for these contracts set for thirty to forty five days out, speculators bets on
summer pricing will soon start to show and consumers may start to see a steady
decline in prices to “pre-summer” pricing.
Some signs to watch for?
Look for a steady addition to gasoline inventories in August as holidays end
and school comes closer. It will be interesting to watch distillate fuels such
as diesel and heating oils to see where prices may start to rise as we get
closer to Fall.
While it may appear that the gasoline season may be over, weather could still
play an important role as hurricane season always brings the chance of
disruption as well as rising prices in August/September.
But another good sign comes from the U.S Energy Information Administration
report from last week that showed gasoline inventories about five percent over
inventories over a five year average for this time of year.
That’s it for this
week!
Regards to all.
George Murphy
Twitter
@GeorgeMurphyOil
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