Wednesday, January 27, 2021

Price changes for Thursday, January 28th, 2021

 

Hi to all,

 

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

 

*Heating and stove oil to drop by a half cent a litre.

*Diesel shows a drop of 3/10ths of a cent, and...

*Gasoline shows an increase of a half cent a litre.

 

Market highlights

 

Markets are showing crude mostly steady this past week as they weigh the impacts of Saudi cuts of an added million barrels a day due to start February 1st, and with Russia and Iraq also cutting back on exports by an added 300,000 from Iraq, the markets are beginning to show signs of tightening crude oil supplies amidst the covid-19 pandemic.

 

Average prices may be up here, but...

Irving Oil has applied to the New Brunswick EUB (Energy and Utilities Board) for an immediate increase to all fuel prices that would rank with increases that consumers saw through the Public Utilities Board here from NARL’s request for immediate assistance two months ago.

      Irving says that it has faced severe difficulties with its company as margins have tightened against rising costs and lower demand. They have applied for an increase of 4.09 cents plus taxes on motor fuels and a 3.02 cent a litre increase to heating fuels. These numbers are about eighty percent of what they have asked for in a scheduled hearing due to happen in March.

      The hearings into the application will continue next week as more information from Irving is wanted.

       Story here: Irving Oil request for 'urgent' wholesale price hike stalls over redacted evidence | CBC News

         Refiners everywhere are facing the same problems with jet, distillate marine and transportation fuels all being hit hard from the Covid-19 pandemic with some refiners worldwide shutting their doors or reducing their production markedly.

 

US EIA inventories

The Energy Information Administration is reporting another build in US crude inventories in last week’s reporting, adding another 4.4 million barrels to crude stocks.

     Gasoline inventories were down by 300 thousand barrels, while distillates were up 500 thousand barrels.

     Refiner capacity was reported at 82.5 percent as refiners tried to chew into inventories.

     US domestic oil production was reported at 11 million barrels a day, down two million barrels a day from the same timeframe last year.

 

That’s it for this week!

 

Regards,

 

George Murphy

Twitter @GeorgeMurphyOil  

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