Hi to all,
Here’s what I have
for price changes for this week:
*Heating, stove oil
and Diesel fuel all show an increase of 1.2 cents a litre.
*Gasoline shows an
increase of 2/10ths of a cent per litre.
Market highlights
Colder US weather
moves distillates up
All of a sudden,
it’s cold outside.
With colder weather suddenly gripping the U.S northeast, market traders have
seen an increase in demand for distillate fuels like heating and stove oils,
and that has also played into a slight increase coming to diesel fuel prices as
well.
Spot prices for distillate fuels have moved up in lock step with oil prices
through this pricing session, and as the weather continues to be colder heading
into the depths of winter, we may not see upwards pricing pressures drop
anytime soon.
Markets tend to change their focus to distillates this time of year as colder
weather spurs demand for heating, stove oil and diesel fuel.
US-China trade deal
done?
Some movement in
trade talks has also spurred oil prices upwards this week as speculation
surrounds the markets with word that the US has suspended fifty percent of
tariffs placed on Chinese goods and services back in September in exchange for
China buying all American produced agricultural products.
In addition, the U.S will delay implementation of additional tariffs on China
that would have taken effect on December 15th.
China
has also dropped additional tariffs on US manufactured cars and other
agricultural products as there seems to be a “truce” called in what is known as
“Phase one”.
“Phase Two” talks will involve deeper talks to remove remaining tariffs and are
said to be starting “immediately”.
Estimates amongst traders say the economic damage caused by the tariff
disagreement between the two countries ranges anywhere between $160 and $250
billion dollars, not to mention the damage caused by the slowdown in the world
economy.
Oil turned slightly higher this week as some hope is showing for the recovery
of the world economy through to the end of 2020.
US inventories:EIA
The latest US
inventory report has crude oil supplies adding 800,000 barrels ahile a surprise
gain showed for distillates, adding 4.1 million barrels.
Gasoline supplies increased by 5.4 million barrels with refiner capacity
measured at 90.6 percent.
US domestic crude oil production was recorded at 12.8 million barrels a day,
down 100,000 from the previous week.
That’s it for this
week!
Regards and Merry
Christmas!
George Murphy
Twitter
@GeorgeMurphyOil
Hi to all,
Here’s what I have for this
week’s price changes:
*Heating and stove oil shows
a slight increase of a half penny a litre.
*Diesel shows an increase of
6/10ths of a cent a litre, and...
*Gasoline shows no change to
prices this week.
Market highlights
US-China trade deal close?
As a possible sign of an
agreement between the US and China in their trade dispute, the US has
reportedly delayed the imposition of further tariffs on Chinese goods and services
as a gesture of good will as a final deal is said to be close at hand.
New tariffs from the Trump government were
due to kick in December 15th as a measure to get the Chinese to bend
to economic pressure.
Oil prices rose slightly in the face of
anticipated higher demand for oil and refined products.
Propane price sticker
shock
Last week’s strong upwards
movement of propane prices was probably a shock to some consumers in the
province as prices increased by over 14 cents per litre.
As far as I know, spot prices in Sarnia,
Ontario rose sharply as a result of a strike by CN Railway that curtailed
deliveries of propane supplies from Western Canada, thus driving up prices for
any available stock.
As the strike is now over, I fully expect
to see prices retreat to more normal levels in the coming couple of days.
US Inventories
The US Energy Information
Administration has released its latest inventory data showing that crude
supplies dropped 4.9 million barrels while gasoline supplies grew by 3.4
million barrels.
Distillate supplies increased 3.1 million
barrels on a reported capacity of 91.9 percent a s refineries returned back
from maintenance programs and drew on oil stocks.
Domestic production was reported at 12.9
million barrels a day.
That’s it for this week!
Regards,
George Murphy
Twitter @GeorgeMurphyOil
Hi to all,
Due to unpublished
data through the U.S Thanksgiving holiday, I’m running on an incomplete dataset
this week. However, I do have something to go on!
Here’s what I have
for this week’s price changes:
*Heating, stove oil
and Diesel fuel all show a drop of 8/10ths of a cent a litre, and...
*Gasoline shows a
drop of 1.8 cents a litre.
Market highlights
Markets await OPEC
moves
Markets were
showing a slight increase at the start of the session last Wednesday as OPEC
discussion had some pretty heavy talk over the prospects of an extended cut in
production ahead of the December 5th and 6th meetings.
However, markets showed an almost 5 percent drop in oil prices as speculators
saw initial numbers that showed OPEC and other non-OPEC members had not stuck
to their agreed-upon production cuts. Oil gained some lost ground on Monday as
traders again saw hope of cuts to production and even an extension and
deepening of cuts to help support prices.
For now, it’s all eyes on OPEC meetings later this week.
U.S inventory data
U.S inventory data
again showed a build in U.S crude stocks, bringing with it sure signs that a
glut is beginning to tell in the U.S as sales drop.
EIA data shows that crude stocks increased by 1.6 million barrels, while
gasoline inventories increased by 5.1 million barrels, a sign that demand may
be waning in spite of the U.S thanksgiving Day holiday. New data will be
released Thursday that may give me a better lay of the land on demand.
Distillate stocks also increased by 700,000 barrels as refiner capacity was
reported at 89.3 percent.
U.S domestic production also was recorded at 12.9 million barrels a day.
IEA warns of global
glut in supply
The International
Energy Agency is again warning of a growing glut of world oil supplies as
non-OPEC producers add more production to world supplies.
The IEA is projecting that world supplies will increase by an estimated 2.3
million barrels a day, while projected demand is forecast to grow by a mere 1.2
million barrels a day as the world economy slows.
Again, according to the IEA, it may come down to what OPEC will do this week as
any cut to production will have to be substantial in order to support oil
prices, and that’s also not taking into consideration OPEC+ being able to stick
to their self-imposed cuts.
Traders are saying that, a failure for OPEC to act may lead to another sell-off
in oil as the glut looms.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
