Energy prices, measured in U.S. dollars, continued to climb last week, with WTI, North Sea crude (Brent) and diesel up 3.3%, 1.6% and 2.9%, respectively, on the week. Black gold is now trading at prices not seen since December.
- Energy prices continued to rise last week following the U.S. Department of Energy's (DOE) release on Wednesday of data on inventories held the previous week. U.S companies were carrying a total of 1.9 million barrels of crude, significantly less than analysts expected.
- Last month oil exports out of Iraq were at a 30-year high. OPEC's second largest producer continues to ship crude at full capacity since it is not included in the official quotas and has no restrictions whatsoever on output.
- The loonie appreciated 5% in the last month, which limited rising gasoline prices in Canada. The loonie's strength was tied to the rally in oil prices and a less accommodative tone in comments made by the Governor of the Bank of Canada.
- Even if fuel prices have risen by close to $0.05/liter in the last month, they are still almost $0.25/liter below where they were a year ago. Clients interested in budgeting part of their fuel costs in this rising market may consider leaving some orders at levels slightly lower than today's fixed prices. For clients who can afford to be patient, this approach can secure a better swap price. Have a good week!
Philippe Shebib