Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oil to increase by 2.3 cents a litre.
*Diesel to increase
by 2.6 cents a litre, and...
*Gasoline to
increase by 1.5 cents a litre.
Market highlights
Covid-19 vaccines
continue to power the markets
It’s all about
“anticipated demand” as markets reacted heavily to more Covid-19 vaccine talk
this week with the latest announcement by AstraZeneca.
Oil responded as anticipated demand was seen with any vaccine availability with
talk in the US that the vaccinations there could begin as soon as the first
week in December.
Yellen as Biden’s
Chair of the Federal Reserve
Joe Biden is not
quite the US President yet, but his appointment of Janet Yellen as Chair of the
Federal Reserve yesterday was also seen to power up the markets.
Yellen was chair of the reserve appointed under Barrack Obama, but was not
reappointed by Trump when her term expired in 2018. She headed up defense of
the stimulus packages into the US economy during Obama’s tenure, so her
appointment signals a possible return of a stimulus program in January to aid
in any economic recovery.
Soon time to give
back?
Watching spot
prices this week made me turn my eyes back to March when markets collapsed and
spot prices retreated on lower oil and demand from consumers.
It may be slightly early, but spot prices are just five cents
a litre lower than where they were “pre-collapse” in March for heating oil and
six cents off the mark for gasoline.
If
I may be too presumptuous to ask, at what point do we as consumers get our
money back from the approved increase given by the Public Utilities Board to
carry NARL through this “crisis”? Surely, refining margins have improved
markedly over the past two weeks, enough to “consider” a re-start of the
refinery.
US inventory data
The latest
inventory data shows yet another rare increase in oil inventories with crude
stocks rising by 800,000 barrels.
Gasoline increased by 2.6 million barrels, while distillates dropped 5.2
million barrels.
Refiner capacity increased to 77.4 percent, up from last week.
US domestic production was reported at 10.9 million barrels a day, up 400,000
barrels a day over the last week, possibly signalling a return of production.
Although down by two rigs this past week, there were 310 rigs operating in
North America, up from last month’s 293.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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