Hi to all,
Here’s what I have for this week’s price changes:
*Heating, stove oil and Diesel all show a drop of 1/10th of a cent a litre.
*Gasoline shows an increase of 7/10ths of a cent a litre.
Market highlights
OPEC meets Wednesday
OPEC will meet again Wednesday in a meeting to revisit cuts imposed on world markets and to reassess how those cuts have impacted the markets.
The meeting is being watched closely by some speculators for any signs that might point the future prospects of crude. Crude oil, while up slightly with imposed cuts, has not gained any real value as was expected in the face of weak demand during the Covid-19 crisis. If the news from OPEC is seen as flat, then a correction in prices may possibly happen as any negative outlook on prices will affect speculators.
Meanwhile, the International Energy Agency and OPEC are still saying that demand for this year will be down anywhere between 8.1 and 9.3 million barrels a day as a result of Covid-19 and the world economy.
US inventory data
US crude oil inventories were down again in last Wednesday’s inventory report, this time by 4.5 million barrels.
Gasoline dropped 700,000 barrels, while distillates also lost 2.3 million barrels on 81 percent refiner capacity.
Interesting to note that US domestic production also dropped by 300,000 barrels bringing US domestic production down to 10.7 million barrels a day.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
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