Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oil to increase by 2.1 cents a litre.
*Diesel fuel to increase by 1.9 cents a litre, and...
*Gasoline to increase by 2.8 cents a litre.
Market highlights
Oil rises on economy
Oil prices continued to increase this week on an optimistic outlook that the economy in the US will bounce back.
Demand for gasoline also increased along with other refined commodities, as the traditional start to the summer driving season is now underway, increasing spot prices another 2.8 cents over the last week.
It’s usually just after this session every year that we see a slow retreat in refined prices, at least until the first major storm hits from hurricane season, usually at the end of July.
Of course, complicating all this remains the prospect of Covid-19 that still remains a factor in demand.
US rig counts drop again
How telling is the shutdown of oil production?
If the US rig count is any indication, according to Baker Hughes, another 21 rigs were offline over the last week, bringing the overall rig count down to 237 operating rigs south of the border. To put that number in context, this time last year saw 983 rigs in the field.
US inventories down again
US crude oil inventories were recorded down again this week as 5 million barrels was drawn from overall oil stocks.
Gasoline inventories added 2.8 million barrels, while distillate added 3.8 million barrels.
US refiner capacity was recorded at 69.4 percent.
US domestic output was recorded at 11.5 million barrels a day, 1.8 million barrels lower than peak production in February.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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