Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oils to increase by 4/10ths of a cent/Litre.
*Diesel shows an
increase of 3/10ths of a cent a litre, and...
*Gasoline shows an
increase of 1.1 cents a litre.
Market Highlights
Rise in Covid
counters any price increases
The news this past
few days has been centered around the rise in Covid-19 cases worldwide as Covid
fatigue has sparked a new round of cases that has speculators worrying over the
effect on demand for refined product.
With new cases rising in Spain and Australia, besides what’s been happening in
the US, concerns for any further increase in crude prices remain in doubt as
demand is seen to be hit.
Oil prices have been mostly steady with refined product prices remaining where
they have been over the past three weeks now as Covid numbers have been rising
steady in recent weeks.
US EIA inventory
data
US crude oil
inventories increased up to the week of July 17th, adding 4.9
million barrels to present stocks.
Gasoline inventories dropped by 1.8 million barrels, while distillates
increased by 1.1 million barrels.
Refiner capacity was recorded at 77.9 percent.
Meanwhile, also buried deep in the data, some reason why I think prices will
remain fairly steady at $40 to $43 US for Brent for the time being.
The same inventory report for last week also showed an important increase in US
domestic production, which increased 100,000 barrels, rising from 11 million
barrels a day to 11.1 million barrels.
If this is any important notification, then it shows that according to the
timeline, US shale drillers can survive at $38 US, and some spigots are quick
to turn back on to take advantage of rising oil prices.
Also, after a long series of drops in overall US rig counts, the report for
last week from Baker Hughes, showed an increase of but ONE rig getting back to
work in the oil patch. If that trend upwards shows this next week, then expect
there to be some spark to keep it playing in the oil markets to mitigate any
further increase in Crude oil.
Canadian dollar
gains ground
The Canadian dollar
has increased in recent days, rising from $1.36 Canadian against the greenback
on July 16th, to today’s $1.337 Tuesday noon.
The increase in the dollar has mitigated further any
increases for the week as a higher dollar tends to benefit Canadian consumers
against US prices.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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