Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oils to increase by 1.8 cents a litre.
*Diesel fuel to
increase by 1.9 cents a litre, and...
*Gasoline to
increase by 3/10ths of a cent a litre.
**Winter blending is now in effect, so distillate prices may be off slightly from the actual that will occur until springtime!
Market highlights
Irving refinery
outage a warning
Consumers were
given a scare this week when the Irving refinery in New Brunswick was faced
with a shutdown due to an explosion and fire that caused minor injuries, but
thankfully, no loss of life.
The fact that the refinery was already in a partial shutdown mode for routine
maintenance also alleviated some fears over any shortage that could have
resulted in the markets of Atlantic Canada and the U.S northeast. However,
there may be some possible issues if the refinery has to close for any extended
period of time in the event of extensive repairs.
The closure of the refinery that supplies most of the Maritimes and the U.S
northeast also serves as a warning on what could happen if reciprocal sales
arrangements that lead to the future closure of any more refineries is allowed
to occur.
The same could be said for the need for another refinery to service the region
of Atlantic Canada to protect consumers and industry from any further cuts of
supply. Certainly if our energy security is to be held at risk of such a
possibility.
Sanction day:
November 4th
Sanctions are due
to kick in fully against Iran three weeks from now as pressure mounts on other
countries to curtail imports of Iranian crude. The policy of sanctions by the
U.S on the OPEC oil exporting country seems to be working as CNBC is reporting
that exports during the first week of September have dropped again to less than
1.1 million barrels a day.
Venezuela has also experienced a further drop in production as its economy
faces almost total collapse and inflation runs amuck.
Oil also gained as questions remain around Saudi Arabia’s ability to increase
production with the Saudi’s pumping out just shy of 10.7 million barrels a day
and Russia also breaking production records.
IEA warns of high
oil price damage
The International
Energy Agency is also putting out a note and a call to OPEC to immediately
increase production before high oil prices start to cause economic damage.
The
IEA calls it a “red zone” where some say happens when U.S prices hit $3 US a
gallon for consumers. The IEA is warning that higher oil prices will cause
damage to growth in some of the world’s fastest growing economies.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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