Tuesday, February 26, 2019

Price changes for Thursday, February 28th, 2019


Hi to all,



Here’s what I have for this week’s price changes. Keep in mind that winter blending may throw off distillate prices a little:



*Heating and stove oils show an increase of 1/10th of a cent a litre.

*Diesel fuel shows an increase of 3/10ths of a cent a litre, and...

*Gasoline shows an increase of two cents a litre.



Market highlights



Trump tweet sends oil downwards-Monday

It’s not often you see it, but when the U.S president sees oil rise, and then reacts, it’s amazing to see the markets react as much as they did on Monday.

     Trump tweeted:  “Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike-Fragile”

     Oil prices retreated on Monday, losing over $2 US according to US Energy Information Administration data.

 

Added value to heavy crude could benefit this province

A story I read online on Oilprice.com talking about Venezuela’s heavy crude has me thinking...

    The story at the supplied link talks about a possible shortage of heavy crude oils on the markets that could potentially run short as a result of sanctions and political strife in Venezuela.

     But the article also talks about infrastructure issues here particularly in central/western Canada, but not mention the situation here off the coast of Newfoundland and Labrador.

     We’ve got a fair bit of heavy crude off our shores now.

     But remember, with sanctions against Iran, OPEC production cuts and possibly further disruptions coming from Venezuela and a lack of infrastructure to get it out of central Canada, this province may be in line to benefit by the shortage.

     I’ll keep an eye to further moves in heavies...



U.S inventories

U.S crude inventories were up over the last week ending February 15th with crude adding 3.7 million barrels.

     Inventories of distillate and gasoline both dropped by 1.5 million barrels on 85.9 percent capacity as refineries remained partially shut down for routine maintenance to make ready for spring production of gasoline.

     U.S domestic production added another 100,000 barrels bringing U.S domestic production to an even 12 million barrels a day.



That’s it for this week!



Regards,



George Murphy

Twitter @GeorgeMurphyOil

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