Hi to all,
Here’s what I have
for price changes for this week, all data in:
Keep in mind winter
blending, which may throw off the distillate numbers a little!
*Heating, stove oil
and Diesel all show an increase of 1.2 cents a litre, and...
*Gasoline shows an
increase of 1.7 cents a litre at the pumps.
Market highlights
Saudi Arabia to add
to cuts
In an effort to
support prices and indeed increase them, Saudi Arabia announced yesterday that
it would add more cuts starting in March.
While previous cuts of 800,000 barrels have already started to hit the markets,
the additional cuts will bring Saudi output of crude oil down to 9.8 million
barrels a day.
Saudi Arabia is possibly trying to reach a balanced budget point for the year,
but according to the International Monetary Fund, they need oil priced at $80
US to do it.
Keeping a close eye to this piece of news as the cuts come immediately leading
into the spring run-up as we head to the summer driving season.
U.S and China trade
talks on again
Trade talks are on
again between the U.S and China as we quickly approach their own March 1st
deadline.
Speculators are optimistic that if tariffs are still in place by that time,
then the likelihood of a further slowdown in the Chinese economy will occur,
thus driving the price of oil down again as a result of lower demand.
EIA predicts new
production in the U.S
The U.S Energy
Information Administration predicts that U.S domestic production will hit 13.2
million barrels a day through the year 2020, if the present trend holds out and
oil prices stay steady or increase further.
U.S domestic growth has increased to the point that it is now the highest it
has been in recent memory. Since 2008, oil production in the U.S has increased
almost six million barrels a day.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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