Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oil to increase by 4.7 cents a litre.
*Diesel to increase by 5.1 cents a litre, and...
*Gasoline to increase by 5.5 cents a litre.
Markets rebounded this week as speculators continue to hope that economies will start to open again and consumer demand picks up right along with it, reversing the losses of the week before when oil went negative for the first time in history.
With European countries opening up shop, and the US joining them-at least in some states-demand is expected to rise, but for how long?
Any breaking cases as a result of the early opening of the economy may very well set it back to a new starting point, all with oil prices paying the price...again.
World oil production shut down?
Worldwide, optimism over the economy returning has added to oil’s fortunes, but it’s some data on oil that is shut in that is awakening speculators.
Refinery runs south of the border are down a good 20 percent plus, drilling rigs are down sharply and production is also off worldwide with the hope that OPEC will also stick to their end of cuts.
Estimates now show close to 20 million barrels a day in oil production has been cut while Covid-19 rages worldwide.
Data still needs to be seen to confirm that OPEC is cutting their own production by an agreed-upon cut of 9.7 million barrels a day by May 1st however.
US inventory data
The latest data from the Energy Information Administration continues to show crude oil inventories increasing with crude adding nine million barrels of supply.
Gasoline dropped 3.7 million barrels while distillates added 5.1 million barrels.
Refineries operated at 69.6 percent of capacity on the week.
US domestic production dropped to 12.1 million barrels a day as drillers continues to turn off the taps.
That’s it for this week!