Oil Market, Exchange Rate and Heating Oil Price Information February 2020.
Brent Crude Dated ($ per Barrel)
Price at Start of Month: $56.59 Price at End of Month: $50.41
Highest Price in Month: $60.28 Lowest Price in Month: $50.41
Pound £ to US Dollar Rate $ Exchange Rate FT:
Start of Month: 1.3182 End of Month: 1.2773
Kerosene (Heating Oil) Cargo Price $ per tonne
Start of Month: $517.75 End of Month: $461.00
Highest Price in Month: $543.25 Lowest Price in Month: $461.00
Resulting in a Heating Oil Price (Pence Per Litre) Monthly range: 4.91 ppl
Oil Market commentary:
The global crude oil market continues to reel from the slowing economic activity caused by the coronavirus (Covid-19) outbreak. Brent Crude prices are testing support at $50/b with concerns over demand hitting markets. Market commentators believe we are now in a "demand crisis" with it unclear how far demand will fall due to COVID-19.
The International Energy Agency (IEA), has slashed its oil demand growth for 2020 by 365,000 barrels a day, a 30% reduction to its previous forecast made last month and it warned that this year would be the first time in a decade that the global oil demand would contract because in 2019 China accounted for more than three-quarters of global oil demand growth.
OPEC is likely to cut production to try and prevent prices Brent Crude falling below $50/b. This is important because a clear break below $50/b. could trigger a sell-off towards $30/b. and increase the risk of a global recession.
For Middle Distillates (Heating Oil / Diesels) the fundamentals improved last week in the US for distillate with stocks falling and demand rising, however, the figures do not reflect the growing crisis in the world and potential threat to distillate demand as COVID-19 spreads across Europe.
As the key ICE Gas Oil Future has now fallen to around $450/t. a period of consolidation is likely, but if there is a major outbreak in a European or US city we expect the future to fall to $291/t. with risk of losses to $200/t.
Additional Oil Market commentary & Market Data available from the BBC here: Market Data
The Office for National Statistics record the price of heating oil and publish monthly updates on the average delivered cost of a domestic delivery of 1000 litres of kerosene in the UK . The information held by the ONS is freely available online and can be found here: ONS Price of heating oil