Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oil shows no change to prices.
*Diesel shows an
increase of 2/10ths of a cent, and...
*Gasoline shows a
drop of a penny a litre.
Market highlights
Oxford Institute
for Energy Studies: No oil supercycle
The Oxford
Institute has come out saying not to expect an oil supercycle of prices ranging
to $100 a barrel.
The energy studies organisation joins with the International Energy Agency in
it’s thinking that lower demand with a slower than expected economic recovery
worldwide, a slower vaccine rollout, and an increase in shutdowns due to covid
are cited as reasons why.
They go on to cite that oil prices will remain anywhere between $59 and $69 US
for the rest of 2021 and 2022.
Come by Chance
refinery sale close?
As yet unconfirmed,
but sources are telling me that the possible sale of the Come By Chance
refinery could be close.
Holding up any agreement is the sale of the tank farm complex and retail
operations owned by Silverpeak and North Atlantic Refining.
I have also heard that the potential sale would involve production from the
refinery amounting to 40,000 barrels a day of crude with the remainder being
oil from recycling and renewable manufacturing of oil products.
As late as February, Reuters reported on the potential sale of the refinery
between Cresta Fund Management, North Atlantic Refining Limited and Silverpeak.
The Newfoundland and Labrador government gave NARL $16.6 million to keep the
refinery in warm idle mode.
The refinery has been shuttered since last March when demand for product
crashed due to Covid-19 that shuttered shuttered over 1.7 million barrels of
production a day worldwide with more closures, shutdowns and conversions to
renewable fuels in the mix.
Possibly delaying any sale of the refinery is a third wave of covid-19
worldwide that promises to bring lower demand along with it.
Also, as late as February the International Energy Agency said that the world
remains with too much refining capacity with 102 million barrels a day and a
world market that requires 80 million barrels in 2021.
US EIA inventories
The latest
inventory report from the Energy Information Administration showed another draw
on inventories as crude supplies dropped 3.5 million barrels.
Gasoline inventories increased by four million barrels and distillates also
climbed by 1.5 million barrels.
Refiner capacity was recorded at 84 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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