Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oils to increase by 8/10ths of a cent a litre.
*Diesel fuel to increase by 1.5 cents, and...
*Gasoline shows an increase of a penny a litre.
Market highlights
US inventories
US crude inventories took a major hit last week as crude supplies from the Gulf of Mexico were cut off with the disruption showing up in the data.
Crude inventories dropped 10.8 million barrels while gasoline was down marginally by 200,000 barrels.
Distillate inventories were up by 600,000 barrels on 93.1 percent refiner capacity.
US domestic production dropped the same week with production recorded at 11.3 million barrels a day, possibly as a result of rig shutdowns throughout the Gulf of Mexico region as Hurricane Barry passed through. I fully expect those numbers to return to normal in the next inventory report Wednesday.
US-China trade and tariff talks on again
World oil prices increased slightly this past week as negotiators from both sides seek to end the impasse in trade talks between the US and China. Oil prices rose close on $2 US Brent as both sides are anxious to reach an agreement that would see China tariffs lifted.
Still, the spectre of a slowing world economy and troubling stats out of China showing a slowdown there taking hold, held back prices from taking off as future oil demand was seen to be a factor.
US economic slowdown?
In the meantime, according to a Bloomberg story, the US is starting to show signs of a slowdown that could also start to play its part in lowering of demand and oil prices.
Figures from the last quarter show US growth down to 2.1 percentage points from the first quarter’s 3.1 percent as the US Federal Reserve considers a rate cut to help bolster a possible stall in the US economy.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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