Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oils to drop by 1.5 cents a litre.
*Diesel shows a
drop of 1.8 cents a litre, and...
*Gasoline shows a
drop of two cents a litre.
Market highlights
OPEC+ overdoes it
While OPEC and
OPEC+ made the decision to add more crude oil to the markets starting in May,
speculators bet that tight compliancy would reign in any possibility of members
breaking quotas.
Now comes word that OPEC+ members have done exactly that-break quotas by a
million barrels a day in March and April with Russia and Iraq leading the way.
While it did nothing to affect oil prices right away, it seems that OPEC now
has to deal with the possibility that extra oil may be making its way to the
markets, and that might affect prices in the short term.
In the meantime, the Joint Technical Committee for OPEC nations meets again on
May 31st with production discussions no doubt, on the table again as
they weigh the current situation in the world markets.
Iran-US deal
revival
We could hear
something this week...
The Iran-US nuclear
deal is said to be close, and that could add more oil to the markets from Iran,
presently still under sanction by the US. Any addition to the markets could add
upwards of 2.5 million additional barrels to the markets to add to Iran’s
present exports of 800,000 barrels a day.
Discussions are in their fourth round.
In preparation for the signing of the new deal, Iran has been loading tankers
to ship oil directly to the Asian markets as soon as they each sign on the
bottom line.
Iran will be in close competition with both Iraq and Saudi Arabia for parts of
the markets lost by Iran when sanctions were placed in 2018 when the US left
the deal.
Hydrogen is the new
gold at the end of the rainbow
Ireland has
announced a new 120 million Euro green energy project for the manufacture of
hydrogen.
The project will be built just outside of Cork, Ireland and will be 50
megawatts of wind driven electricity generation to manufacture upwards of 20
tons of hydrogen a day. The project should be up and operating by 2023 and
employ 85 people.
The
project is said to be able to remove 63,000 tons of carbon emissions from the
environment.
Just last week, Oman announced a proposed green energy project with energy
companies Enertech and Intercontinental Energy with their joint venture
project 25 gigawatts in size and designed around using solar and wind energy to
produce hydrogen.
US EIA inventories
The Energy
Information Administration has reported a build in crude oil inventories last
week of 1.3 million barrels.
Gasoline supplies dropped two million barrels, while distillates also saw a
drawdown on stocks of 2.3 million.
Refiner capacity was recorded at 86.3 per cent.
US domestic production was recorded steady at 11 million barrels a day.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
No comments:
Post a Comment