Tuesday, December 01, 2020

Price changes for Thursday, December 3rd, 2020

 

Hi to all,

 

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

 

*Heating and stove oil to increase by 2.7 cents a litre.

*Diesel to increase by 2.9 cents a litre, and...

*Gasoline to increase by 2.9 cents a litre.

 

Market highlights

 

OPEC+ fails to meet in agreement on production cuts

OPEC and non-OPEC members met this week to try and reach a consensus in the maintenance of production cuts, but members of the group failed to reach an agreement so far on whether to maintain cuts to present production levels.

      Members on both sides expressed concerns that any addition to production would flood the markets with oil as the world economy has not started to recover from covid-related shutdowns and lower consumer spending.

      While some members wanted an extension to the cuts agreement that is due to expire in January, others worried about OPEC compliance. Russia wants to increase production starting in January by adding 500,000 barrels a day from OPEC+ agreement to put two million barrels a day back into the markets starting in January.

      OPEC+ meets again this Thursday to try and reach a consensus.

       Meanwhile, Norway has scheduled it’s oil industry to back into full production starting at the end of December, opening the prospects of OPEC reaction. The country shut down some production as a result of lower demand and a slump in prices earlier this year.

       Norway is not a member of the OPEC+ organisation and produces about 1.7 million barrels of oil per day.

 

Volkswagen actively looking...

Volkswagen is actively entering the electric vehicle markets again, this time with a new vehicle that will be marketed for less than most other EV’s at present.

     The company is in the development phase for an electric vehicle that will cost between $24,000 and $30,000 US.

     Tougher fuel standards and new stringent environmental regulations are turning the company towards the move, and ensuring that the company has entry into the consumer mass-market.

     In a presentation this past September, the new ID.4 SUV will be at a lower cost than the ID.3 model already on the market in September by the German company.

     Volkswagen said that the move would make EV’s about 60 percent of all its European vehicle sales by 2030.

     The ID.3 model’s largest market right now is in Norway where 60.8 percent of all new vehicle sales in October were of electric vehicles.

 

Everything is bigger...In Texas.

A company called Invenergy has announced it will begin construction of a large solar energy project it says will generate 1.8 gigawatts of electricity.

     The project already has companies lining up for the power, with telephone giant At&T lining up to purchase 500 megawatts of power, while Honda is buying another 200 megawatts.

      Several companies have already signed on to buy 100 megawatt or greater blocks of power. They include McDonald’s, Google and the city of Byron, Texas.

      The company has not disclosed how much they sold the power for.

 

US EIA inventory data

The latest Energy Information Administration inventory data is out, and crude stocks dropped by 800,000 barrels last week.

     Gasoline stocks reported a build of 2.2 million barrels, while distillates dropped 1.4 million barrels.

     Refiner capacity was reported at 78.7 percent.

     US domestic production was reported to be up another 100,000 barrels to sit at an even 11 million barrels per day, 1.9 million barrels less than a year ago for the same timeframe.

 

That’s it for this week!

 

Regards,

 

George Murphy

Twitter @GeorgeMurphyOil  

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