Hi to all,
Due to the fact that, up to release time, I have a lack of published data, I am not in the position to make a guess on price changes!
I have two days data that showed no change to gasoline and a 1.5 upwards change to heating, stove oils and diesel fuels.
However, that data for Wednesday and Thursday are simply not enough to make the guess as prices for oil alone started to drop after Thursday. The most important data needed simply wasn’t available.
In spite of that, if I happen to get data between this evening and tomorrow afternoon, I will try and get those numbers out to everyone concerned!
That’s what happens when you rely on the free sites!
Market highlights
OPEC+ considers cuts to support oil
Both OPEC and non-OPEC members are hoping to reach another agreement to deepen cuts to production, even after signing an agreement just weeks ago to extend present cuts to June.
OPEC feels that the extension on the cuts agreement simply wasn’t enough to help support prices, especially in the face of a drop in world demand caused by the Coronavirus.
Corona virus still playing a heavy role
Demand for oil and some refined products is till on the retreat, albeit slowing, in the face of the Corona virus outbreak.
With the Chinese economy showing strong slowdown signs as a result, and tempered demand for distillate products for the airline industry as China travel slows, there is still no sign of a turn-around for oil while the virus sweeps economies before it.
Unknown as of yet exactly how much demand is going to be affected for marine diesels and other distillates as the cruise industry also starts to take the force of a hit as a result of the virus.
US inventory data
The latest report from the Energy Information Administration is out, and crude oil has again climbed upwards adding 3.4 million barrels to total stocks.
Gasoline inventories dropped a hundred thousand barrels, while distillate inventories added 1.5 million barrels.
US data also shows refiner capacity at 87.4 percent as refineries look towards summer and maintenance shutdowns.
Oil and electricity
July is still a long way away, but if low oil prices keep the trend, electrical consumers will see a direct benefit from the rate stabilisation formula.
Projections just a few months back showed a projected $106 a barrel Canadian cost while recently, prices have been ranging $72 Canadian.
The electrical provider was allowed to increase prices based on a projected increase from $86 a barrel Canadian to $106 Canadian.
The increase allowed at the time was 6.4 percent, or $6.40 on a $100 power bill. The allowable increase to rates occurred in October, 2019.
That’s it for this week!
Again, you might see a second note from me if I can chase down the data somewhere!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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