Tuesday, May 04, 2021

Price changes for Thursday, May 6th, 2021

 Hi to all,


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

 

*Heating and stove oil to increase by 1.7 cents a litre.

*Diesel shows an increase of 1.6 cents a litre, and...

*Gasoline shows an increase of 2.9 cents a litre.

 

Market highlights

 

Oil prices rise

Oil prices hit new highs since the start of the pandemic as jet fuel use has increased and vaccinations progress worldwide, a strong indicator of increased demand.

    There is some expectation out there calling for oil prices to hit $80 US by the end of the third quarter this year as more travel and a return to normal from the pandemic occurs. But the possibility of an increase to inflation rates as well as further outbreaks of covid-19still are keeping oil somewhat rangebound in recent weeks, keeping oil below $70 US. Possibly keeping oil prices below that mark is a return of Libyan exports and OPEC adding more oil in the markets starting this month.

     In spite of the situation with India and it’s covid fight, oil prices increased $ 4 US this week on the optimistic news stories.

 

Labrador consumers could be hit hard

Prices in Labrador where the winter freeze is in effect could be hit hard as spot prices have risen sharply since the last shipment of fuels to the area.

      Spot prices for gasoline have risen a rough thirty cents since last November.

      When the freeze is lifted, consumers could be in for sticker shock as prices in the area affected by the winter freeze open up to new shipments of fuels to the area.

      It is unknown when that freeze on prices will be lifted, but it’s not anticipated that prices will fall back in time to absorb the blow before the summer shipping season starts.

 

European Union hydrogen strategy

The European Union in July of 2020 announced it has endeavoured down the hydrogen highway in an effort to move away from fossil fuels and go carbon neutral by 2050.This week saw the next step with the port of Rotterdam making moves to become the European centre for hydrogen storage and production.

     The port city is planning on both green hydrogen production from renewable sources, like wind and solar, and blue hydrogen from natural gas with carbon capture and disposal under the seabed.

      The European Union hopes to make hydrogen the energy of choice in transportation use as part of that strategy.

 

US EIA inventories

The latest inventory report from the Energy Information Administration saw a slight increase in inventories of crude oil, increasing by 100 thousand barrels over the week.

     Gasoline stocks also increased by the same amount.

     Distillates decreased by 3.3 million barrels, probably because of increased jet fuel use.

     Refinery capacity increased to 85.4 percent.

     Us domestic production was reported at 10.9 million barrels a day.

 

That’s it for this week!

 

Regards,

 

George Murphy

Twitter @GeorgeMurphyOil  

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