Tuesday, September 29, 2020

Price changes for Thursday, October 1st, 2020

 

Hi to all,

 

Here’s what I have for this week’s price changes:

 

*Heating and stove oil to drop by 4/10ths of a cent a litre.

*Diesel fuel shows no changes, and...

*Gasoline shows an increase of 4/10ths of a cent a litre.

 

Market highlights

 

All Covid-all the time

Markets have been showing some signs of life as it seemed Covid-19 was under some semblance of control, but reality woke markets up again to day as second waves of Covid-19 soaked the markets with concerns over demand and economic recovery.

     With cases steadily rising again in Europe and the United States, concerns mounted again today that sent oil prices back to their mid-week starting point from last week. A retreat as well with refined prices, which had been showing signs of a possible sharp increase this week due to dipping gasoline inventories.

 

Alternatives making news

It may have been a small, twin-engine plane that took off into British skies last week, but what powered it is making the real headlines. And while some articles spouted the possibility of Airbus making Hydrogen powered flight as early as 2035 that could put more downwards pressure on oil and distillate prices into the foreseeable future.

     Meanwhile, a company called ZeroAvia based in California were successful in making their own flight with a six passenger Piper Malibu craft, making it the first ever flight using hydrogen powered flight. They express intent to take over smaller piston-driven 10 to 20 passenger markets first before moving to higher passenger number aircraft.

 

Companies weigh in on peak oil

British Petroleum ran three scenarios in a report released last week that suggests the world may already have hit ‘peak oil” and, because of Covid-19, we are now witness to a downturn in world demand that they predict will result in world oil use falling to 55 million barrels a day by 2050, falling rapidly due to climate change laws and measures.

     Meanwhile, ConocoPhillips says it expects oil demand to return and be even stronger with demand exceeding 100 million barrels after 2022, but describes 2021 as the “year of uncertainty”.

 

US inventory data

The latest data from the Energy Information Administration showed another draw of 1.6 million barrels, while gasoline supplied dipped 4 million barrels, leaving gasoline just one percent above the five year average for this time of year.

     Distillates increased by 3.4 million barrels with refiner capacity measured at 74.8 percent.

 

That’s it for this week!

 

Regards,

 

George Murphy

Twitter @GeorgeMurphyOil  

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