Tuesday, May 18, 2021

Price changes for Thursday, May 20th, 2021

 

Hi to all,

 

Here’s what I have for this week’s price changes:

 

*Heating and stove oil to increase by 7/10ths of a cent a litre.

*Diesel to increase by 8/10ths of a cent a litre, and...

*Gasoline to drop by 2/10ths of a cent a litre.

 

Market highlights

 International Energy Agency releases report

The International Energy Agency (IEA) has released a major report on the direction the world needs to follow in order to address net zero by 2050.

     The report calls for the end of use of coal as an energy source and states that countries have a long way to go before the world reaches the lofty goal of net zero by 2050, and that a cleaner energy future will result in more jobs and opportunities than any presented by oil, gas and coal.

      The report also calls for the immediate halt of development of any new oil and gas projects.

      Countries will have to adapt their own policies toward clean energy as different countries face different conditions, but all should have the same goal of meeting net zero by 2050 to ensure no rise in global temperatures that could prove devastating.

      Faith Berol, head of the IEA says the IEA stands ready to assist countries in preparing their own roadmaps to meet net zero, and also providing advice to any jurisdiction in speeding up the energy transition.

     Link to the report: Net Zero by 2050 – Analysis - IEA

 

US-Iran nuclear deal close?

In a breaking story earlier today, the BBC reported that the US and Iran were close to reaching agreement on a new nuclear deal that could have seen the lifting of some sanctions against Iran.

     The new deal could possibly see Iran release more crude to the world market that would potentially drop oil prices as the false news story did on Tuesday.

      The call made earlier by the BBC was withdrawn after sources said any agreement was premature.

      Iran has been under sanctions since leaving the 2015 deal, but any agreement could see Iran quickly increase output of oil from 2.5 million to four million barrels a day within three months.


Oman takes a jump into hydrogen

Oman has made a move to invest in hydrogen production.

     The Middle East country announced earlier today of a possible investment of $30 billion dollars to enter into the future of hydrogen in the hope of turning the country into one of the largest green producers of the fuel through solar and wind power use of electricity in the electrolysis process of hydrogen manufacturing.

      The final decision to go ahead with the project is due in 2026.

      The project involves construction of a 25 gigawatt green electricity plant for the conversion process.


US inventory data

The latest report from the Energy Information Administration shows crude oil supplies dropped 400 thousand barrels while gasoline stocks increased by 400 thousand barrels.

     Distillate supplies also dropped by 1.7 million barrels.

     US refinery capacity was reported at 86.1 percent and US domestic production reported at 11 million barrels a day, up 100 thousand barrels a day from the previous week.

 

That’s it for this week!

 

Regards,

 

George Murphy

Twitter @GeorgeMurphyOil  

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