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.
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!