Hi to all,
Here’s what I have for this Thursday’s price changes:
*Heating and stove oil to increase by 3 cents a litre.
*Diesel fuel shows a 3.3 cent a litre increase, and...
*Gasoline shows an increase of 4.9 cents a litre.
OPEC+ cuts start to bite
OPEC is finally getting serious about production cuts with member compliance reaching 88 percent during the month of May. That’s a stark change in the data that showed most member nations were doing much less on compliance.
The latest numbers will be used to inform OPEC’s Joint Ministerial Monitoring Committee which now oversees OPEC members and their compliance at their next meeting July 15th to gauge how much more to cut from production, if anything.
Canada getting hit hard
Over 1.1 million barrels of crude output has been shut in since the collapse in crude prices according to Oilprice.com. The story says Canada’s output of 3.5 million barrels a day in 2019 has taken a hit mainly from train exports in Alberta where crude oil shipments have dropped from 450 thousand barrels a day to just a shade over 150 thousand per day.
The hard shutdown is also responsible for capacity issues in the pipeline export system with there being “plenty of room” for the export of crude oil to southern or western markets.
US inventory data
US crude oil inventories were recorded up marginally by 1.2 million barrels over the past week, while gasoline inventories were down on increased demand by 1.7 million barrels.
Distillates were also down, but by 1.4 million barrels.
Refiner capacity was measured at 73.8 percent.
US domestic out put took another downwards hit, losing another 600,000 barrels a day of production to sit at 10.5 million barrels a day from the January high of 13.5 million barrels.
That’s it for this week!