Hi to all,
Here’s what I have
for this week’s price changes, all data in:
*Heating and stove
oils show an increase of 1.4 cents a litre.
*Diesel shows an
increase of 1.6 cents a litre, and...
*Gasoline shows an
increase of 4/10ths of a cent a litre.
Market highlights
OPEC+ adds oil
OPEC+ started to
add more oil to the world markets May 1st, but all indicators seem
to point to some OPEC members getting a head start on adding oil with OPEC member
Iran adding almost 200,000 barrels a day as early as April.
Saudi Arabia was due to add an extra 250,000 to an agreed amount divided
between other OPEC+ nations of 350,000 barrels a day in May, and the same
amounts due again to increase in June month.
OPEC has yet to release figures that show exactly how much more has been added,
but it is said it may be substantially over the 600,000 barrel mark with the
addition of 200,000 by Iran.
According to a Reuters News Agency survey, they found that OPEC members
Algeria, Nigeria and Angola added a collective 100,000 barrels to their April
output.
US Colonial
pipeline shut down
The US Colonial
pipeline has been shut down as of Friday in an apparent ransomware cyber-attack
that has shut down exports from the US Gulf Coast region of refining to the US
Northeast area, and gas station supplies there are drying up quick with an
anticipated Friday restart of fuel deliveries set for a few days away.
Gas stations in Atlanta, North Carolina and Florida have been shut with US
governors there calling a state of emergency as supplies dry up.
Spot prices for gasoline and other products have failed to rise to signal the
impending US shortage and prices here are not anticipated to be affected though
a 4/10ths of a cent have been recorded so far this week.
In the US, some prices have hit close to three dollars a gallon on the news.
The US government has stated that it is prepared to move product by rail and
transport trucks if it is needed.
Inflation-there, I
said it
First indications
of inflation may the reason why oil prices have been tempered and spot prices
not rising as much as anticipated. The US government is due to release the
latest consumer price index figures this Friday that may indicate a slowdown in
the US economy, this following a much weaker than expected US jobs report last
Friday that showed a lower than expected 260,000 growth in jobs.
Any indications of inflation may also signal that consumers have been saving
more than the usual in the face of a continued Covid fight and rising prices
for consumer items.
Greene report and
hydrogen
Hydrogen may be the
word for the future of Newfoundland and Labrador as it sets to switch direction
of the province’s finances towards the creation of its version of the green
economy, according to the Greene report.
Hydrogen demand is set to skyrocket in the next couple of years as economies
refocus on a fossil fuel based economy and the world seeks answers for the
carbon problem.
In the report, Greene and the volunteer committee recognise the opportunity of
hydro resources and the possible use of it in the generation of hydrogen as a
solution to the carbon issue, and the possible direction this province could
take in transitioning the economy to a carbon neutral and green economy.
The process of electrolysis is used to generate hydrogen. DC power is what is
required in the process and provides an interesting turn to the Muskrat Falls
oversupply of electricity issue as , while controversial, the electricity
converts back to Ac at Soldier’s Pond.
If
you could take the unsold electricity and convert it into a tangible product
that is needed like hydrogen, it could help alleviate some of the burden on
Muskrat and taxpayers.
That
possibility should be seriously examined, especially if they can solve the
Labrador-Island fixed link issue.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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