Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove
oil to increase by 2/10ths of a cent a litre.
*Diesel fuel shows
no changes, and...
*Gasoline shows an
increase of just 4/10ths of a cent a litre.
Market highlights
Companies buying
back oil?
You heard it right.
During the April storage crisis when prices plunged for West Texas
Intermediate, oil companies rented space from the United States strategic
reserve. At the time, the companies were successful in getting oil into storage
to the tune of 23 million barrels into the Louisiana and Texas old salt mines
that were long used for storage in the strategic reserve.
They had space rented there on the condition they would have it removed again
by March 2021.
Yesterday, it was confirmed by CNBC that seven companies have begun to remove
the oil and place it back into regular inventory. The start of the removal
process has seen about 2.2 million barrels removed and placed into regular
inventory, offsetting some drawdown of stocks that we have seen the past couple
of weeks.
It still leaves a problem of that 20 million barrels that could sway prices.
US dollar lower
spurs oil
Anytime you see a
slippage in the US dollar, it’s not unusual to see an increase in oil prices,
or any other commodity.
It has been one of those weeks!...
Gold climbed well above $2000 a ounce on rising unemployment levels in the US
as did oil, but retreated somewhat as some sentiment over growing US employment
data as well as rising Covid-19 cases saw gold skyrocket.
Oil pared any further increases as a result of flattening summer demand.
US inventory data
The latest Energy
Information Administration data is out.
US crude inventories were down by 7.4 million barrels, while gasoline
inventories were up a modest 420,000 barrels on the week.
Distillate inventories were also up by 1.6 million barrels on 79.6 percent
refiner capacity.
US domestic production was steady at 11 million barrels a day.
In the meantime, the Baker Hughes rig count was down another four rigs to 247,
while 983 were working the same timeframe last year.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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