Hi to all,
Here’s what I have
for price changes for this Thursday.
ALL DATA IS IN, SO
THERE WON’T BE A NEED FOR A WEDNESDAY UPDATE.
*Heating and stove
oils show an increase of 1.2 cents a litre.
*Diesel fuel shows
an increase of 1.6 cents a litre, and...
*Gasoline shows an
increase by an even penny.
Market highlights
OPEC+ (Plus)
institutes production cut
Both OPEC and
non-OPEC members, otherwise known as OPEC+ have agreed as of Friday past, to
institute a round of production cuts that amounts to a little over a million
barrels a day with OPEC absorbing about 800,000 barrels of that.
The agreement between the two groups is for six months and totals close to 1.2
million barrels.
Exempt from making any cuts are Venezuela, Iran and Libya who are all under
production pressures, but Iran having been placed under sanction by the U.S and
other counties.
Canadian dollar
loses ground
The Canadian dollar
lost more ground against the US dollar over the last week losing about two
cents against it’s southern counterpart.
Weakness
in resource prices like oil is mostly to blame, but a busy U.S economy also
figures into the equation.
Expect market
instability
Markets will be
shaky the next few weeks and months as markets weigh evidence that the cuts
will have some sort of positive impacts on prices, but there are a couple of
other factors worth watching.
A worldwide economic slowdown is seen as being on its way as stock markets have
shown. Lower than estimated returns have spurred the thought that there has
been some downturn in demand and that has been reinforced with OPEC making cuts
to what some believe as an “over-supplied” oil market.
A tit-for-tat spat between the US and China continues, even though a 90 day
truce was agreed upon early on Saturday as both countries try to find a
solution to their trade issues. Tariffs placed on Chinese goods were enough to
bare watching as a slowdown in the Chinese economy is said to be starting.
However, late news this evening includes a telltale sign that China may not be
hurting as much as first thought as imports of oil in November hit ten million
barrels a day for the first time ever.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
709.240.1920
709.685.6186
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