Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oil to increase by 1.7 cents a litre.
*Diesel shows an
increase of 2.1 cents, and...
*Gasoline shows an
increase of 3.9 cents a litre.
Market highlights
Oil and refined
prices continue to rise
Crude oil and
refined product prices continued to rise this past week as Texans dealt with a
severe weather system that devastated the state’s electrical system, knocking
out almost 1.1 million barrels a day in refining, and also taking out crude oil
production estimated now as much as two million barrels a day as pipelines and
related infrastructure froze up.
Temperatures went as low as four degrees Fahrenheit and winter weather pounded
electricity users.
Some refining infrastructure may come back online soon though, and that may
bring back some promise of lower prices as prices south of the border have
risen as much as thirty cents a gallon there. Some refiners are reporting that
they may not be back online and in production for another month.
Electricity costs have also skyrocketed, costing as much as $9000 for a
megawatt of electricity.
Saudi’s and Russia
clash on oil?
According to Oilprice.com,
the Russians and Saudi Arabia may be about to clash again over the sudden rise
of oil prices and the timing of a return to production cut between OPEC+ and
Russia.
While Saudi Arabia wants to keep cuts at their present levels heading into
April month, the Russian energy minister Alexander Novak is on record as saying
that the current price of oil is reflective of the market conditions and that
markets have returned to balance.
Russia and OPEC+ will meet again March 3-4th to discuss the
condition of the markets where it is believed that the Saudi’s will use their
million barrel cut in production as a bargaining chip to attaining a new deal
on production at next week’s meetings.
Oil prices have risen sharply and has led some OPEC+ members to seek higher
production levels to take advantage of the price increase.
US EIA inventory
report
US crude oil
inventories dropped 7.3 million barrels in the US EIA inventory report up to
February 12th.
Gasoline supplies increased by 700 thousand barrels and distillates dropped 3.4
million barrels on 83.1 percent refiner capacity in the week ahead of the Texas
blackout.
US domestic production was reported at 10.8 million barrels a day for the same
week.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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