Tuesday, October 13, 2020

Price changes for Thursday, October 15th, 2020

 

Hi to all,

 

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

 

*Heating and stove oil to increase by 1.9 cents a litre.

*Diesel to increase by 1.4 cents a litre, and...

*Gasoline to increase by 1.2 cents a litre.

 

*A reminder that we are now into winter blending for distillate fuels now, so the numbers there can be off somewhat for now until springtime when the blend is lifted on the return of warmer weather.

 

Market highlights

 

World Energy Outlook 2020 released from IEA

The International Energy Agency has released its 2020 world oil outlook has been released.

     It gives three different scenarios for oil and demand growth, all forecast under Covid-19 conditions, that gives us a snapshot on what could be for the future of oil.

     In all scenarios, alternative energies take centre stage, particularly solar energy which it predicts, has become the cheapest form of energy available in most countries that the world now knows.

      Hydropower remains the most accessed, but it is also followed by offshore and on shore wind power.

      The report also states that a robust investment in electrical infrastructure will be required if countries are to take full advantage of these alternate energies.

      On the oil side, it states that demand will not recover for oil until 2023 and that demand growth will grow modestly until 2030 at which time demand growth for oil reverses.

       But no real sign of dropping demand growth is realised unless government policies change.

Release here: https://www.iea.org/news/world-energy-outlook-2020-shows-how-the-response-to-the-covid-crisis-can-reshape-the-future-of-energy

Report link here: https://www.iea.org/reports/world-energy-outlook-2020#

 

OPEC report shows dropping demand

OPEC also released its monthly oil report today, also reflecting a drop in world demand, mainly by OECD (Organization for Economic Cooperation and Development) and non-OECD countries taking the drop of 800,000 barrels  a day, projecting demand in 2021 at 96.84 million barrels a day from today’s 90.3 million barrels a day, up 6.5 million barrels.

     Its report goes on to state that world demand pre-pandemic was recorded at 99.7 million barrels a day, so any growth will still be well off from the normal.  

 

US EIA inventories

The latest report on US inventories is out and it shows a modest build in crude oil inventories of 500,000 barrels.

     Gasoline dropped 1.4 million barrels while distillates dropped a million.

Refinery capacity was up to 77.1 percent overall with 8.89 million barrels a day supplied to the US markets against 9.46 supplied over the same time period for last year, a difference of just 570,000 barrels a day.

 

That’s it for this week!

 

Regards,

 

George Murphy

Twitter @GeorgeMurphyOil  

No comments: