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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