Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oils show an increase of a half cent a litre.
*Diesel fuel shows an increase of 4/10ths of a cent, and...
*Gasoline shows an increase of 1.2 cents a litre.
OPEC announced this week that their members will not step in and pick up production that will be lost from sanctioning actions against Iran.
Unusual to see OPEC members supporting Iran by all appearances, but the move by OPEC sparked an increase to oil prices whose members said previous to this, that they would be happy to see oil prices sustained over $80 U.S a barrel.
In the meantime, this sets up the prospect of a further rise in oil prices as production in Venezuela remains uncertain and has been falling further with political troubles in the South American country.
With word from OPEC this week came along speculative buying that has also increased spot prices for refined products leading possibly into next week as well as oil prices have been trading over the $80 US mark for the second day in a row.
Spot prices for heating, stove oil and Diesel are all up heading into the next session showing possible increases of two cents a litre.
Gasoline spots are also up, showing an added 1.3 cents into next week so far.
With Iran sanctions set to cut Iranian oil altogether, falling Venezuelan output and stalled U.S domestic output, the stage may already be set for “sustained” prices above $80 U.S a barrel oil as well as for higher refined product prices.
OPEC is not likely to increase production with fears of creating another glut of oil in the markets, and even if sanctions were lifted tonight in Iran and the political situation in Venezuela suddenly solved its problems, production from these areas will not return quickly to solve the dilemma for consumers.
Exactly how does anyone overcome a loss of close to four million barrels of production from the markets without someone having to pay a price for it?
That’s it for this week!