Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oils show a drop of 1.6 cents a litre.
*Diesel fuel shows a drop of 1.5 cents a litre, and...
*Gasoline shows no change in price this week.
Market highlights
US-China trade optimism
The US and China are said to be close to an agreement that could lead to resolution of the trade dispute that has cost both countries an estimated $100 billion in tariffs and fines.
China has been asking the US to remove some tariffs that were imposed by the US as late as September as a show of optimism that a deal can be reached going forward. They may do exactly that as a measure to have Chinese tariffs on oil dropped so the US can export more, thus supporting US oil prices.
OPEC+ still mulling production cut
OPEC and non-OPEC members are still playing with the idea of a production cut as their December meeting comes closer, but the spectre of sticking to those cuts remains as pervasive as ever.
Russia, a participant in the cuts since January has reported that they produced almost 11.3 million barrels a day of oil last month, well ahead of their own production cut as agreed to with OPEC member nations.
The present agreement is set to end in March, 2020.
Iran rattles nerves
Iran has announced that it has added another 1000 centrifuges to refine uranium as Iran makes further moves away from the 2015 nuclear agreement.
Iran wants sanctions to be removed so it can avoid further damage to its economy, and according to officials that say the sanctions have been unduly harsh on the oil exporting country.
There may be something to that as analysts say that Iran needs oil to hot in excess of $190 a barrel US just to balance the books in 2020.
US inventories
US crude oil inventories increased in the week ending October 25th, adding 5.7 million barrels to crude oil inventories.
Gasoline lost three million barrels, while distillates dipped a million barrels.
Refiner capacity was measured at 87.7 percent, up slightly from the last report as some refineries came back online.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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