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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