Tuesday, November 20, 2018

Price changes for Thursday, November 20, 2018


Hi to all,



Here’s what I have for price changes for this week. Keep in mind that these numbers will be updated by 10:00AM tomorrow.



*Heating and stove oils show a drop of 2.4 cents a litre.

*Diesel fuel shows a drop of 2.5 cents a litre, and...

*Gasoline shows a drop of 2.2 cents a litre.



Market highlights



OPEC meets in December

OPEC will meet the first week of December to discuss measures to help support the price of oil from falling further.

     Those measures may include a more extensive cut by a million barrels a day by OPEC members to help support prices. Saudi Arabia, just two weeks ago, stepped into the falling price issue and announced they would curtail exports by 500,000 barrels a day, a move that wasn’t seen by market analysts as being enough to help.



Oil falls further on earnings and economic reports

Oil prices fell almost seven percentage points again today as lower than expected earnings reports signalled a world economic slowdown was in the works.

     Any economic slowdown also sees demand for crude oil drop along with it, part reason why the panic sell-off was on again in the markets today.



Oil inventories up

Oil prices weren’t helped any this past week as inventories were up, according to the Energy Information Administration’s inventory report.

      Inventories of crude oil were up again, this time by 10.3 million barrels against an expectation of 2.2 million barrels.

      Gasoline inventories were down by 1.4 million barrels, while distillate inventories dipped by 3.6 million barrels.

      Refiner capacity was measured at 90.1 percent as refineries were mostly down for winter switchovers and maintenance. This was not seen as an issue with prices as, when capacity picks up, inventories of refined products would be in better shape than what was shown this past week.

     The next inventory report is due Wednesday from the EIA.



     That’s it for this week!



Regards,



George Murphy

Twitter @GeorgeMurphyOil

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