Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oil to increase by 3.4 cents a litre.
*Diesel shows an
increase of 3.6 cents a litre, and...
*Gasoline shows an
increase of 6/10ths of a cent a litre.
Market highlights
Gasoline prices
remain on the moderate side as inventories of crude oil still being soaked up
by refiners churn out added gasoline stocks that simply aren’t being used.
While refiners are enjoying good margins for distillates like Diesel and
heating oils, they are also turning out gasoline that for the moment faces no
demand pressures like the distillates do. Gasoline spot prices have remained
almost steady to a couple of tenths as inventories show lots on hand in the low
demand season.
Margins are also healthy as new regulations around distillate fuels will be
coming into force in 2020 as rules around sulphur content take hold. As these
new regulations take hold for all distillate users, some are saying there could
be a market shortfall of distillate fuels that will increase it’s value as 2020
gets closer, and that is also part reason why we’re seeing elevated prices for
those fuels.
U.S inventories
Inventories
meanwhile, also are enjoying the upside as gasoline gained 8.1 million barrels
in the latest U.S Energy Information Administration report last Wednesday.
Refiner capacity remained well above 96 percent and distillates also saw a
massive gain of 10 million barrels.
U.S domestic production increased again, but this time by a barely noticeable
two thousand barrels a day, so essentially remaining close to 11.7 million
barrels a day.
The U.S rig count also dropped by seven rigs as the possibility of lower oil
prices may be taking a bite out of working rigs. There are 1138 rigs operating
in the U.S up to January 10th.
That’s it for this
week!
Regards,
George Murphy
Twitter:
@GeorgeMurphyOil
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