Tuesday, February 12, 2019

Price changes for Thursday, February 14th, 2019


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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