Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oils show a decrease of 1.4 cents a litre.
*Diesel shows a
drop of 1.2 cents a litre.
*Gasoline shows a
drop of 6/10ths of a cent a litre.
Market highlights
U.S inventory data
shows a little good news
At a time when
there started to be some concern for rising distillate prices, there is finally
good news that consumers have been waiting for: A gain in distillate
inventories.
With the onset of the fall season just around the corner, distillate prices for
heating, stove oil and Diesel all took a drop at the time of year they always
rise.
But
it was the startling figure of a 6.2 million barrel gain in inventories for
distillates that influenced a larger than expected drop in these fuels this
week as any gain in inventories this time of year would be a positive for
consumers.
Gasoline also showed a gain in inventories of 1.3 million barrels.
Crude oil showed a loss of 5.3 million barrels on 97.6 percent refiner
capacity.
$80 U.S versus
trade wars
Saudi Arabia has
put word out in the markets that they “would be happy to see prices for oil
over $80 U.S”.
But will that stick?...
The signals from the Middle East country helped spark oil prices late today as
oil prices rose, but later lost some of those gains.
Concerns still mount as to where oil prices are headed as this person
sees some volatility ahead with no clear direction in pricing. An ongoing
tariff “back and forth” between China and the U.S sees the possibility of China
facing a slowing economy as U.S gets set to add more tariffs to Chinese
imports. That means less demand for a country that is a huge factor in
determination of world crude prices.
And while all this goes on, Iran still exports product to China while the
Chinese have placed tariffs on U.S crude oil coming into its borders. If China
still remains as a major customer of Iran, then could we be looking at a
failure in part of sanctions placed by the U.S?
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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