Tuesday, August 06, 2019

Price changes for Thursday, August 8th, 2019


Hi to all,



Here’s what I have for this week’s price changes:



*Heating and stove oil show a drop of 1.4 cents a litre.

*Diesel also shows downward by 1.4 cents, and...

*Gasoline shows a drop of 2.8 cents a litre.



Market highlights



US-China trade and tariff dispute deepens

The US and China trade dispute continues to play in the markets this week as the US promises more tariffs on Chinese goods totaling $300 billion dollars and with the Chinese retaliating with cutting off markets to agricultural products from the US.

     Already, some are fearing a deepening slowdown in China for oil as attention has quickly turned from Middle East tensions to a worsening of relations to the world super economic powers.

     Oil prices have suffered as a result with Brent crude dropping close to $5 US a barrel over the last week bringing Brent prices to their lowest in seven months.



In the Middle East

While things have been rocking between China and the US, tensions in the Middle East have taken a back seat to the economic dispute with the British now increasing security around tankers in the Persian Gulf and Gulf of Oman.



US Inventories

US inventory data from the Energy Information Administration showed that crude oil stocks continue to drop as refiner capacity keeps up with demand. Crude supplies dropped 8.5 million barrels while gasoline stocks showed a drop of 1.8 million barrels.

     Distillate inventories dropped 900,000 barrels on refiner capacity of 93 percent.

     The next inventory data will be released noon Newfoundland time.



That’s it for this week!



Regards,



George Murphy

Twitter @GeorgeMurphyOil  

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