Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oil to drop by 1.2 cents a litre.
*Diesel fuel to drop by 1.3 cents a litre, and...
*Gasoline shows a drop of 8/10ths of a cent per litre.
Market highlights
U.S-China talks
Speculators remain skittish over the possibility of the U.S and China reaching a settlement in their trade dispute when talks resume again on Thursday.
The U.S has blacklisted more Chinese companies from doing business within U.S borders which may throw another wrench into things.
The 28 companies were blacklisted for alleged human rights violations. The week previous was with optimism that a deal would be reached with Chinese officials expressing remorse that a better deal couldn’t be reached, but they would sign what was presented up to this point.
US EIA revises oil price forecast lower
The United States Energy Information Administration revised its Short term Energy Outlook (STEO) lower from what was forecast just a month ago citing the world economy and a strong building of world oil inventories as we get closer to 2020.
Brent prices were forecast to be $5 a barrel lower than the $63 U.S that was forecast just in early September, with Brent dropping to $57 a barrel U.S in 2020. As far as I can read in the report, it doesn’t take into account rising geo-political risk such as that resulting in a production disruption in Saudi Arabia three weeks ago.
U.S inventory report
The latest report shows more refinery facilities have shut down for annual winter maintenance as refinery capacity was reported down to 86.4 percent.
Crude inventories gained as oil throughputs halted and stocks built as a result.
Gasoline inventories dipped by 200,000 barrels while distillates dropped 2.4 million barrels.
U.S domestic production of crude dropped 100,000 barrels to sit at 12.4 million barrels a day.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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