Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oil to drop by 2.2 cents a litre.
*Diesel shows a retreat of 3.1 cents a litre, and...
*Gasoline shows a drop of 4.3 cents a litre.
Market highlights
US and Iran standoff?
Makes you wonder sometimes whether the US-Iran standoff over sanctions and the nuclear production deal are really enough to spur higher oil prices. Even as tensions rise, oil prices have not reacted in their usual manner as in the past with a knee-jerk rise in prices.
I’ve wondered about this before and can really only attribute this “phenomenon” as to rising US domestic output of oil.
Keeping in mind that the US has increased production by 1.4 million barrels in the last year alone (12.3million from 10.9 million), one can only imagine the growth rate should something sinister happen in the Straits of Hormuz and the Gulf of Oman that may temporarily disrupt shipping access points.
But when you consider other factors such as a worldwide economic slowdown, dropping demand as predicted by the International Energy Agency, a steady but modest 1.1 million barrel a day output from Venezuela and the ongoing trade dispute between the US and China, you can be excused for feeling sceptical.
US EIA inventories
US supplies of crude oil dropped by 3.1 million barrels of oil, but inventories of gasoline showed a positive increase of 3.6 million barrels.
Distillate supplies also increased by 5.7 million barrels, allowing the retreat of refined product prices.
Refiner capacity was recorded at 94.4 percent.
That’s it for this week!
Regards,
George Murphy
Twitter: @GeorgeMurphyOil
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