Hi to all,
Here’s what I have for this
week’s price changes:
*Heating, stove oil and
Diesel all show down by two cents a litre.
*Gasoline shows a drop of
five cents a litre.
*Keep in mind that winter
blending may throw off the distillate numbers somewhat.
Market highlights
Saudi’s and Russians sign on to up production
When I said a couple of weeks
ago that there was soft support for oil at $85 US a barrel, the news that the
Saudi’s and Russians had entered into an extended production agreement
confirmed it.
With both countries in an “unofficial,
secret” agreement to add production that was agreed to in September, traders
saw it as a move that would only add to widening speculation of building supply
worldwide, and all in spite of dropping production from Venezuela and coming
sanctions against Iran.
Saudi threat over Khasoggi incident proves empty
Blogger and journalist Jamal
Khasoggi remains on the missing list and Trump is appearing to back away as the
Saudi’s also back down from a threat to cut it’s own production.
Both sides now appear to use any excuse to
downplay the fact that a man has gone missing in the interests of diffusing an
explosive situation. A cut in production would have raised prices, but it had
the potential to cause an increase in internal Saudi unrest and economic damage
to the U.S, who seem to have toned down their rhetoric on Khasoggi.
Market traders continued to send oil downwards
in spite of the “threat”.
U.S crude inventories increase
The latest U.S crude
inventory report last week showed a build of six million barrels, while
gasoline also increased by one million.
Distillate inventories were down by 2.7
million barrels on 88.8 percent refiner capacity, a sign that U.S refiners were
heading into maintenance mode.
With capacity down, gasoline also started
to drop as demand was seen to be lower with the inventory build.
That’s it for this week!
Regards,
George Murphy
Twitter GeorgeMurphyOil
No comments:
Post a Comment