Hi to all,
Here’s what I have for price changes in what has proven to be a very volatile week:
*Heating and stove oils to drop by 5.7 cents a litre.
*Diesel to drop by 5.4 cents a litre.
*Gasoline to drop by 5.4 cents a litre.
Market highlights
Tariffs, tariffs, tariffs...
While the long-standing tariff dispute carries on with a quickly approaching deadline for any agreement to settle the argument, the US has also turned to the tariff mechanism as a diplomatic weapon to use against its southern neighbour, Mexico.
In fact, what Trump has done is cause more world economic worries to add to an already unsteady situation.
The Trump administration was out this week announcing the use of tariffs to get Mexico to deal with the US immigration issue. For years, illegal immigrants have used the US-Mexico border area as a gateway to the US, and the US wants it to stop, placing several industries there and in Canada, under threat. Oil went lower again as a result.
Again this past week, the ongoing tariff dispute played downwards on oil prices as time has been ticking away toward the deadline for resolution of the dispute.
The U.S is promising more tariffs, but China is responding with an economic weapon of it’s own, next to the further imposition of tariffs on US goods. They’re also promising added difficulties in getting rare earth minerals from China to the world markets, promising a technology war at the same time.
US inventories weigh
US inventories showed a build in gasoline last week with the raw liquid adding 2.2 million barrels to supplies, while oil stayed relatively steady, dropping 300K barrels. But the real news may have been with US domestic figures which showed another 100K barrel a day expansion in production with the US now hitting 12.3 million barrels a day.
Refiner capacity was up to 91.2 percent, but gasoline still showed a build in inventory in spite of the total product supplied.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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