Price changes for Thursday, March 28th, 2019

Hi to all,



Here’s what I have for this week’s fuel price changes. Keep in mind that winter blending is still in effect!



*Heating and stove oil show an increase of 1/10^th of a cent.

*Diesel shows an increase of 4/10ths of a cent, and...

*Gasoline shows an increase of 2.8 cents a litre.



Market highlights

With gasoline prices set to rise again this week, I ran a comparison with last year’s numbers to see where we are. Gas prices are just below where they were for the same time last  year with the exception that the Canadian dollar was about six cents less than what it was today, and probably part reason why spot prices are almost the same.  Spot price for gasoline this year for this week’s price change I have at 64.8 cents. Last year’s spot was 65.5 cents.

      Price at the pumps last year, as compared to this week’s if the prediction holds?

$1.33.1 last year versus $1.31.1 later this week.

       Oil on March 27, 2018 was at $68.91 US a barrel for Brent



Tightening supplies versus economy

OPEC and non-OPEC members are still sticking to their guns on maintaining production cuts that amount to 1.2 million barrels a day, and other factors also continue to weigh keeping oil prices up.

     The production cuts agreement is in effect until June, but many believe that deadline will be extended.

     Iran sanctions and falling Venezuelan supplies are also helping to add supply constraints to the world market, even as news of a slowing economy worldwide mounts. Iranian production has reportedly dropped below 2.6 million barrels a day, while Venezuelan production has dipped to just a million a day.

     Word of a possible slowdown was leaving oil in the markets as “mixed” as factory data from the U.S, Asia and Europe was seen as being weak. A weaker demand growth possibility also weighed on oil, keeping any overall weekly increase to oil prices this week as limited.



U.S inventory report

The Energy Information Administration’s inventory report last Wednesday was a little startling.

     U.S crude inventories dropped by 9.6 million barrels, while gasoline also dropped 4.6 million barrels.

     Distillate inventories were also down, but by 4.1 million barrels, lending some upwards support to prices.

     Refiner capacity was recorded at 88.9 percent, still not showing a good uptick on refiners getting back to work.



That’s it for this week!



Regards, to all,



George Murphy

Twitter @GeorgeMurphyOil