Hi to all,
Here’s what I have for price changes for this week:
*Heating, stove oil and Diesel fuel all show an increase of 1.2 cents a litre.
*Gasoline shows an increase of 2/10ths of a cent per litre.
Colder US weather moves distillates up
All of a sudden, it’s cold outside.
With colder weather suddenly gripping the U.S northeast, market traders have seen an increase in demand for distillate fuels like heating and stove oils, and that has also played into a slight increase coming to diesel fuel prices as well.
Spot prices for distillate fuels have moved up in lock step with oil prices through this pricing session, and as the weather continues to be colder heading into the depths of winter, we may not see upwards pricing pressures drop anytime soon.
Markets tend to change their focus to distillates this time of year as colder weather spurs demand for heating, stove oil and diesel fuel.
US-China trade deal done?
Some movement in trade talks has also spurred oil prices upwards this week as speculation surrounds the markets with word that the US has suspended fifty percent of tariffs placed on Chinese goods and services back in September in exchange for China buying all American produced agricultural products.
In addition, the U.S will delay implementation of additional tariffs on China that would have taken effect on December 15th.
China has also dropped additional tariffs on US manufactured cars and other agricultural products as there seems to be a “truce” called in what is known as “Phase one”.
“Phase Two” talks will involve deeper talks to remove remaining tariffs and are said to be starting “immediately”.
Estimates amongst traders say the economic damage caused by the tariff disagreement between the two countries ranges anywhere between $160 and $250 billion dollars, not to mention the damage caused by the slowdown in the world economy.
Oil turned slightly higher this week as some hope is showing for the recovery of the world economy through to the end of 2020.
The latest US inventory report has crude oil supplies adding 800,000 barrels ahile a surprise gain showed for distillates, adding 4.1 million barrels.
Gasoline supplies increased by 5.4 million barrels with refiner capacity measured at 90.6 percent.
US domestic crude oil production was recorded at 12.8 million barrels a day, down 100,000 from the previous week.
That’s it for this week!
Regards and Merry Christmas!