Hi to all,
Here’s what I have
for this week’s price changes:
*Heating, stove oil
and Diesel all to increase by 1.9 cents a litre.
*Gasoline shows an
increase of 4.2 cents a litre.
Hurricane Sally
backs down
While Hurricane
Sally came ashore along the coast of Louisiana, the damage that it left may be
felt in the pocketbook more so than anywhere along the Gulf coast.
Disruptions
again hit the Gulf with offshore pumping and processing facilities along the
Louisiana coast, cutting off some crude oil and causing short-term spikes to
oil prices, which started to retreat again Sunday as the lack of storm damage
became apparent.
Spot
prices for gasoline increased from 39 cents a litre to 43.1 cents as oil prices
for WTI went from $38 US to $41. Brent went from $40.70US to $43.10 before
beginning the retreat Sunday, ending today at $41.70 US again as Covid concerns
took over the markets again.
Impacts on oil may
be insurmountable
While Covid-19
reigns and rails against economies, let alone people, the damage the worldwide
shutdown may be causing to oil may never be fully overcome.
Even OPEC nations are experiencing increased debt ratio numbers as they try and
cope with oil prices well below what they had budgeted for.
With nations in Europe placing fossil fueled vehicles on the endangered list,
it begs to question how oil prices will survive the “green crush” that is about
to hit.
As
of today, the last year for which a fossil fuel burning vehicle can be sold in
Britain is being proposed to be moved
ahead to 2030, the same year as France, Belgium and Germany, and to expedite
the rollout of environmental programming.
Norway has it tagged to the year 2025.
With the shutdown by Covid-19 and the drop in demand, a worldwide issue remains
with building inventories and storage areas becoming filled with unused oil and
refined products. China has slowed imports as storage is reported close to
full, and India’s strategic reserves are said to be filled to the brim.
Also signalling change is directly from BP who, in their
report say that India may see peak oil demand by the year 2025, a full 25
years earlier than expected.
They go on to say that, while they will still need energy, that will come from
natural gas and renewables, rather than oil itself.
BP goes on to say in the report that the world “may have already passed peak
oil demand as fuel consumption may never recover from the pandemic-inflicted
decline”.
Yes,
troubles with oil are universal, and not just off our shores.
US inventory data
weighs
The latest
inventory report from the Energy Information Administration showed another drop
in crude oil supplies, this time by 4.4 million barrels, but still almost 15
percent higher than the five year average.
Gasoline inventories dropped by 400 thousand barrels, and distillates increased
3.5 million barrels on 75.8 percent refiner capacity.
US domestic production was reported at 10.9 million barrels a day, just 100
thousand barrels off pre-hurricane levels.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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