Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oil to drop 1.8 cents a litre.
*Diesel showing a
drop of 2 cents a litre, and...
*Gasoline to drop
by 3.5 cents a litre.
Market highlights
Covid-19 announces
its presence
For those south of
the border who thought it was safe to open the economy again, we have news for
you.
Covid-19 wasn’t going away.
Numbers of cases of the disease started to increase again in areas such as
Arizona, California and Florida at a time when they thought it was safe to open
a short time ago.
Early openings have helped to spread the disease, and doubts about increasing
demand of fuels riding on those hopes soon were dashed with both oil and
refined commodities beating a retreat that might not stop if Anthony Fauci is
right.
Fauci, the US’s top doc and Covid-19 handler, projects as many as 100,000 extra
cases of Covid-19 to wave over the US if measures to stop the disease soon
aren’t taken in at least 32 US states.
The possibility of a demand crash, at least in the US, will temper any gains
made with oil. European Union countries have gained some semblance of control
over the disease, so that might temper any drop in oil.
US inventories
The Energy
Information Administration’s latest read on inventories is out, showing a gain
in crude inventories of 1.4 million barrels.
Gasoline stocks were down by 1.7 million and distillates up by 249 thousand
barrels.
Refiner capacity was reported up to 74.6 percent of capacity, a slight increase
from the week previous.
US domestic production was reported at 11 million barrels a day, an increase of
500 thousand barrels, and 1.1 million barrels lower than for the same timeframe
last year.
Start watching your
electricity bill
It will hit
sometime this month...
Last year, when I questioned Nalcor’s oil price estimates for electrical
generation of $106 a barrel Canadian, I never did get an answer and suggested
that it would be way off and that Nalcor should revisit the increase to
electrical consumers based on the well-off estimates.
I was proven right.
The present government saw fit to have Nalcor revisit those numbers, lowering
oil prices for electrical generation down to average $51 a barrel instead. The
balance will be returned to consumers in the form of a one-time rebate in
July/August.
The
amount everyone receives back as a credit will be based on overall electrical
consumption.
Again, being July, I am again looking forward to find out what Nalcor’s
estimates for the price of oil for electrical generation will be in their
“application” to the Public Utilities Board, but I will again question the
estimates they come up with.
Present day prices are hanging around $55 a barrel Canadian.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
No comments:
Post a Comment