Tuesday, November 19, 2019

Price changes for Thursday, November 21st, 2019


Hi to all,



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



*Heating and stove oil show an increase of 3/10ths of a cent a litre.

*Diesel fuel shows an increase of 7/10ths of a cent a litre, and...

*Gasoline shows a drop of 3/10ths of a cent.



Market highlights



US and China on again-off again

The U.S and China just seem to not be able to agree to anything, and the agreement that speculators thought may be coming-is not-again.

     China is said to be wanting the US to roll back some tariffs with more due to hit December 15th, just less than four weeks away.

     Having said that, China is also thinking that they may be better off waiting to find out the results of the U.S impeachment hearings that are ongoing, so they can try their luck with different leadership.

     Oil initially showed increasing prices for this session, that is, until news broke of stalled talks and a watered down agreement.



Russia dropping out?

Saudi-led OPEC cuts to production, in concert with other oil producing nations, may be in trouble when OPEC meets to renew the production cut agreement next month in Vienna.

     Russia is said to be not there yet in agreement to a further cut in production should the topic of deepening the cuts to production come up. The present agreement runs until March of 2020, and Russia seems to agree to the same level as agreed last year, but OPEC wants to reach a new agreement to carry on with deeper cuts this year.

     Oil started a retreat Monday on the news.

     OPEC meets December 5th, just under three weeks away.



US inventories

The latest report on the state of US inventories is out.

     Crude supplies grew for the eighth week out of nine as inventories added 2.2 million barrels to a growing US supply.

     Gasoline also increase 1.9 million barrels while distillates dropped by 2.5 million barrels.

     Refiner capacity was reported at 87.8 percent and US domestic output was up to 12.8 million barrels a day.



Interesting debate in the House of Assembly

The House of Assembly will debate a government motion about the placement and use of electric vehicle charging stations in the House on Wednesday as increased use of electric vehicles continues to draw interest from consumers.

     The motion introduced by MHA Perry Trimper, who himself is a user of an electric vehicle, will centre on an experimental program for placing charging stations in predominant locations along the Trans Canada Highway to generate interest in the use of electric vehicles as an alternative transportation choice.

      Interesting as it is and just as a comparison, I worked out preliminary numbers on an imaginary trip to Grand Falls-Winsor using gas and then comparing it to electricity.

      What cost me $70 in a fill-up to make it there would cost me about $7 in electricity.

      Not bad...

      The debate in the House starts at 3PM.



That’s it for this week!



Regards,



George Murphy

Twitter @GeorgeMurphyOil  

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