Tuesday, December 10, 2019

Price changes for Thursday, December 12th, 2019


Hi to all,

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



*Heating and stove oil shows a slight increase of a half penny a litre.

*Diesel shows an increase of 6/10ths of a cent a litre, and...

*Gasoline shows no change to prices this week.



Market highlights



US-China trade deal close?

As a possible sign of an agreement between the US and China in their trade dispute, the US has reportedly delayed the imposition of further tariffs on Chinese goods and services as a gesture of good will as a final deal is said to be close at hand.

     New tariffs from the Trump government were due to kick in December 15th as a measure to get the Chinese to bend to economic pressure.

     Oil prices rose slightly in the face of anticipated higher demand for oil and refined products.



Propane price sticker shock

Last week’s strong upwards movement of propane prices was probably a shock to some consumers in the province as prices increased by over 14 cents per litre.

     As far as I know, spot prices in Sarnia, Ontario rose sharply as a result of a strike by CN Railway that curtailed deliveries of propane supplies from Western Canada, thus driving up prices for any available stock.

     As the strike is now over, I fully expect to see prices retreat to more normal levels in the coming couple of days.



US Inventories

The US Energy Information Administration has released its latest inventory data showing that crude supplies dropped 4.9 million barrels while gasoline supplies grew by 3.4 million barrels.

     Distillate supplies increased 3.1 million barrels on a reported capacity of 91.9 percent a s refineries returned back from maintenance programs and drew on oil stocks.

     Domestic production was reported at 12.9 million barrels a day.



That’s it for this week!



Regards,



George Murphy

Twitter @GeorgeMurphyOil  

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