Tuesday, December 08, 2020

Price changes for Thursday, December 10, 2020

 

Hi to all,

 

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

 

*Heating, stove oil and Diesel to increase by 2/10ths of a cent a litre, and...

*Gasoline shows a drop of one cent a litre.

 

Market highlights

 

OPEC+ agrees to an increase

OPEC+ has finally agreed to an increase in production after a three day session that saw some major differences come to the fore.

     Production will be increased by 500,000 barrels a day from present levels and strict monitoring of production levels will be enforced.

     Russia will pick up an extra 125,000 barrels a day in production as part of the addition.

     The United Arab Emirates was in disagreement with the rest of OPEC. They wanted a return to normal production as agreed to back in April, but OPEC members only conceded some growth and an agreement to revisit the additions to production every month as the world economy recovers.

 

Sticky problems for refiners as oil rises

While any increase in oil prices may be good for oil producers revenues, refiners are left struggling with higher acquisition costs for oil, and a weak demand for refined products.

     The problem arose over the last couple of weeks where prices have risen as a result of speculators betting on a returning economy and demand, and the actualities of the markets where demand has not returned.

      Refined product prices are a good example, where demand remains weak, but speculation over economic recovery has prices increasing to consumers and on the markets. The product is not selling to the same degree, but the acquisition costs rise, causing further complicated refining issues.

 

Green hydrogen project announced

The United Kingdom and Scotland have announced a hydrogen pilot program to further investigate the potential for hydrogen energy as a replacement for fossil fuels.

     Known as the H100 Fife project, the $33 million US pilot project will heat 300 homes and will generate hydrogen through the use of offshore wind and convert that power to manufacture hydrogen through electrolysis.

     100 percent green...

     With every step, fossil fuels are facing worldwide challenges as alternatives take centre stage.

 

That’s it for this week!

 

Regards,

 

George Murphy

Twitter @GeorgeMurphyOil

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