Hi to all,
Here’s what I have for this week’s price changes:
*Heating oil, stove oil and Diesel fuel all show no changes to prices.
*Gasoline shows a drop of 1.4 cents a litre.
Market highlights
US-China trade and tariffs stall the markets
US-China trade talks have stalled and markets are eagerly awaiting word, positive or negative- that may at least give them a sense of direction.
Markets stalled late last week as President Donald Trump denied earlier thinking that a deal was close, saying instead that “Washington wasn’t going to sign any deal that wasn’t good for the US”. Trump is on record at the Economics Club of New York just today stating that if the US doesn’t get a deal it likes, then tariffs will go up”.
The next round of tariffs are due to be applied to almost $155 billion in Chinese goods and services on December 15th.
Iran sanctions continue
Iran is finding it harder to sell its oil on the open market because of ongoing sanctions, but it is selling some.
Iran is running out of storage space that could create further issues in the country as it may have to cut back production.
Iranian production was reported at 2.2 million barrels a day last month, well down from May 2018 when production was measured at 3.8 million barrels a day. Sanctions have hit hard at Iran’s bottom line with it showing in recent news that Iran needs oil to hit $195 US a barrel for the finances of the country to show balanced books.
U.S inventories
US inventories may singularly be showing signs of a growing glut and a world slowdown in demand of oil if the trend continues much longer.
Seven of eight of the last sets of inventory data have shown growing crude oil supplies, the latest data still showing crude supply grew by an added 7.9 million barrels last week.
Gasoline supplied dropped 2.8 million barrels while distillate supplies dropped 600,000 barrels.
Refiner capacity dropped back slightly to sit at 86 percentage points.
The next release of inventory data happens Thursday, a day later than the usual as a result of Remembrance Day.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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