Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oils show a drop of a penny a litre.
*Diesel fuel shows
a drop of 1.4 cents a litre, and...
*Gasoline shows a
drop of 2.8 cents a litre.
Market highlights
More refineries
pack it in
Three more
refineries have shuttered this week, all reporting dropping demand and issues
caused by alternatives and Covid-19’s onslaught.
A refinery in Australia, Belgium and closer in New Jersey have all added their
closures to a rapidly changing market.
The Paulsboro, New Jersey refinery had a capacity of 180,000 barrels a day and
will be converted to produce mostly lubricants and asphalt. Closures and reduced
capacity has cost over 410,000 barrels of refining capacity between US east
coast refiners during the Covid crisis and economic slowdown so far.
PHB refiners also decided to dismantle a refinery with 330,000 barrel capacity
in the wake of the world slowdown.
OPEC+ meets
November 30th
OPEC and non-OPEC
oil producing nations will meet again to discuss a potential extension to
production cuts for another six months as the Coronavirus pandemic continues to
impact demand and the recovery of the world economy.
OPEC
and other nations who agreed to output cuts some time ago were scheduled to add
an additional 2 million barrels a day to the markets in January as part of the
plan to remove a glut of supply of crude in the markets.
In the meantime, Russia is bargaining with Saudi Arabia to extend the
production cuts for three months instead of six months, ending the agreement in
March, 2021 instead of January.
Libya production on
the upswing
After a UN brokered
agreement, Libyan oil production is back on the upswing, measuring 800,000
barrels a day over the last two weeks, and well up from the 250,000 barrels as
measured last month. The OPEC member was faced with internal issues that saw a
production shutdown as factions fought for control of oil exports.
Libyan exports will add more oil to an already over-burdened market, putting
some downwards pressure on Brent prices.
Alternatives:
Germany turning to
more wind & Norway has too much electric
Norwegian
hydroelectric production hit a point last week where they couldn’t put
electricity into the grid, paying customers to consume the energy, while across
the Denmark Strait, Germany has begun the road of adding at least 40 gigawatts
of wind power to their grid by the year 2040.
They presently have a total of 7.75 Gigawatts of wind-driven electricity
capability, with more alternative energy being researched.
According to RenewableUK, the wind energy industry worldwide has grown by 47
percent since January, and all in spite of the Covid crisis...
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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