Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oils show an increase of 2/10ths of a cent a litre.
*Diesel fuel shows an increase of 3/10ths of a cent, and...
*Gasoline shows an increase of 5/10ths of a cent a litre.
**Keep in mind that winter blending may throw off the distillate numbers somewhat.
Keep watching Venezuela
The political situation in Venezuela is being watched closely as political protests continue. But the real possibility of revolution in Venezuela still weighs on the markets, even though sanctioning of Venezuelan crude has been put in place.
While sanctioning keeps their crude out of the U.S, it also means that the U.S has to look for other sources of crude oil to replace supplies lost from the South American country.
U.S domestic production is believed to be one real possibility as crude prices or West Texas Intermediate have risen more noticeably than Brent. Brent prices, in the meantime, have risen in recent weeks also, but are probably more influenced by upwards pressure from OPEC Plus (OPEC and non-OPEC producers) cuts that have nnot really taken a full bight of the markets as of yet.
What’s holding oil back?
With all the word on a possible drop in exports from Venezuela, it’s the weight of disturbing economic news that also permeates the markets.
Economic growth just about stagnated in the Eurozone during January month, sending ripples through the markets and signifying that all may not be well with projected demand that would help bolster prices.
It was a slowdown in the Chinese economy last month, but any signals from Europe would only bolster the thought that any slowdown is underway.
Electric vehicles to impact oil?
I remember a number of years ago, King Fahd I think it was, said that the Kingdom had fifty years more to sell oil and make whatever it could from the riches it had been given.
His prophecy may come true.
With a caveat about rare earth minerals, the Bank of America has stated that the advent of the electric vehicle will kill overall demand growth for crude oil by the year 2030.
That has huge implications as rare earth metals such a lithium and cobalt, predominant metals in electric vehicle batteries are only recently being explored. Countries in Central America have the most promise, says the bank, and if more is found, then the predicted growth in demand may indeed falter. Oil demand itself may peak amidst predictions of a collapse in demand growth, and may in fact drop off again as other alternatives besides crude oil become readily available to world consumers.
That’s it for this week!