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.
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!