Hi to all,
Here’s what I have
for this week’s price changes:
*Heating and stove
oil to increase by 3/10ths of a cent a litre.
*Diesel shows an
increase of 2/10ths of a cent, and...
*Gasoline shows an
increase of just 6/10ths of a cent a litre.
Market highlights
OPEC+ agrees to
output increases
OPEC and other
producing nations agreed to increases in production with the easing of cuts at
the last meeting of OPEC and OPEC+ countries.
Together, both groups will boost production by almost 600,000 barrels a day
starting in May month, then adding another 600,000 in June and the balance of
Saudi Arabian cuts in July.
Still short of the total cuts of 5.6 million barrels, by July the world should
see the addition of close to two million barrels a day added to word
production.
OPEC+ anticipates that demand in the second quarter of this year will increase
enough to absorb the increases to production, but waiting in the wings is the
prospect of new outbreaks of Covid-19 an its variants which may force the group
of oil producing nations to re-adjust their figures to account for any slippage
in world demand by the summertime.
US domestic
production set to increase
While the Covid year
of 2020 and the collapse in demand just about over, US domestic production of
oil has been seeing steady increases in production recently aided by production
cuts worldwide, and a steady increase in oil prices.
US domestic production hit 11.1 million barrels a day in the US Energy
Information Administration’s latest inventory reports, with production rising
from a low of 9.7 million barrels a day just two months ago.
The latest Baker Hughes rig count shows another 13 rigs back to work in the US
last week, showing that small producers in the US shale fields can afford to
operate with prices around $60 US a barrel.
Canadian rig counts were down last week by 12 because of the spring thaw, but
up 28 rigs over the same timeframe last year.
US EIA inventories
The latest report
from the Energy Information Administration shows a drawdown of crude stocks
last week with crude dropping 900 thousand barrels, while gasoline stocks also
dropped 1.7 million barrels.
Distillate supplies were up 2.5 million barrels as warmer weather weakened
demand for that group of fuels.
Refiner capacity was recorded at 83.9 percent, the highest this year and since
the shutdown after the Texas weather events almost two months ago.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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