Hi to all,
Here’s what I have
for this Thursday’s price changes:
*Heating and stove
oil to drop by 1.2 cents a litre.
*Diesel fuel to
drop 1.5 cents a litre, and...
*Gasoline to drop
by 1.6 cents a litre.
Market highlights
Covid drops oil
again
Outbreaks worldwide
of Covid-19 has again led to a oil price retreat the past few days as worldwide
outbreaks have speculators worried about a drop in demand for oil and related
refined products.
Both Brent and WTI prices retreated about $2 US on covid fears.
France has extended curfews and shut-ins to two thirds of its population
while Italy is also into an extended shut-in of its population. Other countries
are considering shut-ins and closures which also affects the world oil price
outlook.
Hurricane in the
Gulf-again
Another hurricane
is set to shut down oil production in the Gulf of Mexico again as tropical
storm Zeta is projected to become Hurricane Zeta sometime today, or overnight.
Hurricane
Delta was successful in shutting in almost 90 percent of Gulf production, while
Zeta has been projected to shut in close to the same amount, temporarily giving
support to oil prices.
Meanwhile, production had just been returning from Delta with the American
Petroleum Institute reporting a crude oil build in the wake of the return of
production.
NARL applies to the
PUB for an increase
Papers have the
tendency to be redacted these days...
Such is the case
with North Atlantic Refining’s application for an increase in fuel prices after
what it says where changes in the markets that have affected their operations
and profitability.
I had asked the PUB for information on the applied for increases, only to
receive a redacted information for the increase with no information on the
requested increase visible.
Interesting to note that NARL and others received an allowable increase to
wholesale and retail margins just this past July to their bottom line. That
comes after an increase to margins in 2019 for heating fuels and propane.
A quick look at the market news and information I have been able to attain out
there is grim in some cases for most refined products as margins have been
severely squeezed. That has led to some refinery closures worldwide and future
closures to at least eleven more I have in Europe due to alternative energy
policies and projected lower deamand.
US EIA inventory
data
Crude oil
inventories dropped by a million barrels last week, while gasoline inventories
climbed 1.9 million barrels as demand was seen to slip with rising covid cases
affecting it.
Distillate inventories dropped 3.8 million barrels on lower refinery capacity
of 72.9 percent.
US domestic production was reported at 9.9 million barrels for the same
timeframe that production was shut in the Gulf of Mexico.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
No comments:
Post a Comment