Last week crude oil prices were relatively stable, with WTI moving in a range of USD 49 to 52/barrel. The price of diesel in CAD/litre climbed 0.02 CAD/litre.
The market is wondering whether the OPEC countries and Russia can reach an agreement at the organization’s official meeting in November. A committee will meet in Vienna later this month to try to resolve differences over output levels for each member of the cartel.
On Friday, following the release of Canadian inflation and retail sales indicators, our loonie lost value against the greenback and fell to its lowest level in seven months. It should be recalled that a drop in the value of our CAD erodes purchasing power in Canada and, as a result, we pay more for fuel.
According to the U.S. Department of Energy, crude oil stocks at Cushing, Oklahoma declined 1.635 million barrels in the week ended October 14, 2016, falling to below 60 million barrels for the first time this year.
Given the depreciating Canadian dollar and with oil consolidating near USD 50/barrel, we encourage you to call us to discuss opportunities to hedge your fuel purchases.
