Crude prices deflated over the past two weeks with Brent and
WTI falling 6% and 8% respectively
over the period.
Uncertainty over global issues
including the ultimate resolution
of the Greek debt crisis,
the Iranian nuclear negotiations,
a rising US dollar and continued strong inventory
positions all contributed to falling crude trading values.
With regard to refined product, off-season demand
and consistent inventory builds
have influenced distillate pricing in reduced wholesale
pricing. Gasoline wholesale
prices have been subject to
more fluctuation as supply and demand dynamics come into
play during this high volume summer
seasonal sales pattern. Inventories
of same remain above average however, as refineries continue
to take advantage of favourable cracking margins due to low
crude prices. The situation
should prevent any potential for
dramatic price escalation for
the foreseeable future.