Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oil to increase by 6/10ths of a cent a litre.
*Diesel to increase by 3/10ths of a cent a litre, and...
*Gasoline shows an increase of 1.5 cents a litre.
Market highlights
Oil prices up
As oil prices have been going in recent months, any increase in oil prices is a celebration for some speculators at a time when there hasn’t been much to celebrate.
Over the past week, oil prices have risen about $2 US a barrel as speculators see hopeful signs that the US and China will see an end to their trade and tariff dispute.
Stock markets have been mostly in record territory again as traders see an increase in demand for oil if trade barriers are lifted off China.
OPEC making moves
OPEC and non-OPEC member oil producers continue to dwell on production cuts as Saudi Arabia is said to be ready to do anything to support prices.
Already Saudi Arabia has made a preliminary move of checking on production levels in OPEC member nations to make sure they have been complying to their side of production cuts before they formally announce measures or further cuts to production quotas
Old habits die hard as OPEC members have often been cheating on their own quotas whenever they see a fiscal advantage as prices rise. In the meantime, compliance was itself pretty good in recent months and talk amongst members and non-OPEC members indicates some willingness to institute a further round of cuts.
Just how much they will end up cutting remains open at this time.
US inventory data
The Energy Information Administration released its weekly report Wednesday that showed a 1.7 million barrel drop in crude stocks as well as a draw in gasoline inventories of 3.1 million barrels.
Distillate supplies also saw a draw of 2.7 million barrels.
Refiner capacity was recorded at 85.2 percent for the week as refiners continued maintenance programs.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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