Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oil shows an increase of 1.7 cents a litre.
*Diesel fuel shows
an increase of 1.4 cents a litre, and...
*Gasoline shows an
increase of 1.9 cents a litre.
Keep in mind that
“winter blending” may throw the distillate numbers (heating, stove and Diesel)
off slightly.
Market highlights
Oil climbs this
week, but...
Oil prices
increased this week as OPEC cuts started to take hold of the markets, but it
may have been short-lived.
Disappointing economic news from China, along with fears of a worldwide
economic slowdown bordering on recession sent oil prices lower today after
reaching a two month high of $63 and change on Friday.
Chinese expansion was reigned in at 6.6 percentage points in 2018, far off from
a “usual” nine percent plus. It’s the lowest read on Chinese growth in thirty
years.
That wasn’t the only piece of news that sent oil lower today. The International
Monetary Fund, or IMF, also said that projections for world economic growth are
lower than previous predictions setting the new number at 3.5 percent from the
3.7 percent previous estimate, indicating a lower demand for crude oil and it’s
refined products.
US inventories
US inventories
recorded a drop in crude oil stocks for the first time in weeks as crude
supplies declined by 2.7 million barrels.
Gasoline inventories were up by 7.5 million barrels, while distillate stocks
increased by three million barrels.
U.S domestic growth was up another 200,000 barrels with production there now
sitting at 11.9 million barrels a day.
Rig count lower
US drilling rigs
operating in the field was down again last week as the rig count dropped by 25 according to Baker Hughes weekly count.
There
are now 1050 operating drill rigs in the U.S now, a full 114 more than the same
week last year.
But with the prospect of oil heading lower, there is a chance
that we could see more rigs fold up operations again, sending U.S domestic production
lower, and the world economic prospects at the moment aren’t all positive.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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