Hi to all,
Here’s what I have
for this week’s price changes:
*Heating, stove oil
and Diesel all show an increase of 1.8 cents a litre.
*Gasoline shows an
increase of 2.3 cents a litre.
Market highlights
OPEC leaves
production untouched
OPEC and OPEC+
members met in Vienna, Austria today to discuss any changes in market
conditions that would have led to changes in production, but all members agreed
to leave in place added production to the markets that started at the beginning
of May.
Members also agreed to maintain levels agreed to in June, and also to add
further production in July.
The next regular meeting of OPEC and OPEC+ members has been set for the first
week in July with all members revisiting the issue of releasing more crude to
the marketplace as demand for oil continues to rise.
US summer driving
season is underway
With strong
gasoline demand underpinning prices, consumers south of the border are taking
to the roads in droves as the US Memorial Day weekend signalled higher
demand-and prices-to consumers who are venturing down the road.
Last week’s EIA inventory report showed gasoline supplied to the markets
hitting almost 9.4 million barrels of gasoline a day, with US inventories also
showing a draw of 1.7 million barrels, a telling signal on a return to near
normal demand as vaccinations continue to thwart any possible slowdown in
demand.
The same timeframe from last year showed almost 7.2 million barrels a day in
gasoline was supplied to a covid shutdown market where demand took a huge hit.
Demand for jet fuels also was on the rise with US inventories showing a drop of
three million barrels for the week as travelers ventured out for the first time
on holiday.
According to the inventory report, refiner capacity also increased slightly to
meet demand, reaching a high for the year of 87 percent.
US-Iran nuclear
deal talks still underway
According to
Iranian officials, some details of the new nuclear deal remain to be cleared up
before Iran can head back into the oil markets.
Iranian officials say that because of complications as a result of Trump
backing out of the deal three years ago, President Biden would return to the
nuclear bargaining table if Tehran starts to comply with strict limits put on
uranium enrichment and inspections through the International Atomic Energy
Agency (IAEA).
France, a signatory to the deal, had concerns over traces of uranium found at
undeclared nuclear sites, and that remains an issue before any deal is signed.
If the deal is signed, oil prices could take a hit as Iran has a massive
inventory of crude ready to ship to market, and have stated they would boost
exports from 2.5 million barrels a day to almost 4.5 million a day with a goal
to produce upwards of 6.5 million long term.
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
