Hi to all,
Here’s what I have
for this Thursday’s price changes:
*Heating and stove
oil to increase by 1.7 cents a litre.
*Diesel shows an
increase of 1.6 cents a litre, and...
*Gasoline shows an
increase of 2.9 cents a litre.
Market highlights
Oil prices rise
Oil prices hit new
highs since the start of the pandemic as jet fuel use has increased and
vaccinations progress worldwide, a strong indicator of increased demand.
There is some expectation out there calling for oil prices to hit $80 US by the
end of the third quarter this year as more travel and a return to normal from
the pandemic occurs. But the possibility of an increase to inflation rates as
well as further outbreaks of covid-19still are keeping oil somewhat rangebound
in recent weeks, keeping oil below $70 US. Possibly keeping oil prices below
that mark is a return of Libyan exports and OPEC adding more oil in the markets
starting this month.
In spite of the situation with India and it’s covid fight, oil prices increased
$ 4 US this week on the optimistic news stories.
Labrador consumers
could be hit hard
Prices in Labrador
where the winter freeze is in effect could be hit hard as spot prices have
risen sharply since the last shipment of fuels to the area.
Spot prices for gasoline have risen a rough thirty cents since last November.
When the freeze is lifted, consumers could be in for sticker shock as prices in
the area affected by the winter freeze open up to new shipments of fuels to the
area.
It is unknown when that freeze on prices will be lifted, but it’s not
anticipated that prices will fall back in time to absorb the blow before the
summer shipping season starts.
European Union
hydrogen strategy
The European Union
in July of 2020 announced it has endeavoured down the hydrogen highway in an
effort to move away from fossil fuels and go carbon neutral by 2050.This week
saw the next step with the port of Rotterdam making moves to become the
European centre for hydrogen storage and production.
The port city is planning on both green hydrogen production from renewable
sources, like wind and solar, and blue hydrogen from natural gas with carbon
capture and disposal under the seabed.
The European Union hopes to make hydrogen the energy of choice in
transportation use as part of that strategy.
US EIA inventories
The latest
inventory report from the Energy Information Administration saw a slight
increase in inventories of crude oil, increasing by 100 thousand barrels over
the week.
Gasoline stocks also increased by the same amount.
Distillates decreased by 3.3 million barrels, probably because of increased jet
fuel use.
Refinery capacity increased to 85.4 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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