Hi to all,
Here’s what I have
for this week’s price changes.
Keep in mind winter
blending as that mix may throw off the distillate numbers somewhat, and also that
there is EXTREME volatility in the numbers that could be pointing the numbers
lower than what I have here now.
*Heating and stove
oils show a drop of 8/10ths of a cent a litre.
*Diesel fuel shows
a drop of 9/10ths of a cent, and...
*Gasoline shows a drop
of 1.3 cents a litre.
Market highlights
OPEC cuts
ineffective?
Talks of a slowing
world economy not only sent the stock markets into a volatile condition the
last few days, but oil is also starting to pay the price on a possible
slowdown.
With less demand for oil in a slowing economy, the prospects of absorbing a
glut worldwide is becoming doubtful. Growing shale production in the U.S has
seeded doubts that oil prices will have support as more oil is seen to be added
to the markets. The last two days have seen oil retreat with even refined
prices starting to trade much lower right along with it, possibly to reflected
at the pumps over the next two weeks.
The likelihood of cuts being effective is also being outweighed by word from
Russia that oil production has increased there, even with the word that the
country was keen to join OPEC in making their last round of cuts to oil
production.
API inventories up
The American
Petroleum Institute also released their inventory data late this evening that
also showed a moderate build of 3.5 million barrels in overall U.S crude
inventories, along with building inventories in Cushing, Oklahoma where West
Texas Intermediate is traded. Oil was up there by just over a million.
Inventories
of gasoline were also said to be up just over 1.7 million barrels nationwide.
All
eyes will be on the Energy Information Administration inventory report due
shortly after 12:30PM NST for further word on oil inventory, as well as any
growth in U.S domestic production figures.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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