“Economical Madness”

The European economy continues to face adverse economic ,however  there is a European nation were these adverse economic conditions are immediately passed to the public in this case motorist .

Portugal continues to have one of the world’s most expensive final consumer prices for fuel (petrol) per liter, the prices are largely inflated by the now parliament elected government, in the last weeks gasoline price have increased by over 14 cents per liter…

The common citizen in Portugal faces once more a huge  increase in taxes as part of the 2016 State budget  presented to the European parliament, these measures imply increase in taxes to the stamp duty, tax on oil products and tobacco tax.    

The political action taken by the new parliament elected government will downgrade the Portuguese economy to new levels of “economical madness”

The public servants will see the working hours reduced to 35h a week!!! While the public sector will continue 40h a week.. Four Public holidays removed during the Troika control have now been reinstated, according to local news tax fraud and evasion by big economical groups will continue.

Discretionary measures in public administrations, the Executive expects an  impact of 0.21% of GDP at the level of indirect taxes, which is about 155 million more that will breach the Treasury in 2016., this shows in fact that no real measures have been taken to reduce the burden the state has on the economy.

NO FREEZE DEAL

Oil prices have not passed their lowest point as shrinking supplies outside OPEC and disruptions inside the group will not the erode global surplus, the International Energy Agency said.

Production outside the Organization of Petroleum Exporting Countries will increase by 450,000 barrels a day this year, or 70,000 barrels a day more than estimated last month, the agency said. Markets are also being supported by output losses in Iraq and Nigeria, and as Iran restores production to a faster pace than planned following the end of international sanctions.

THE JACKPOT

Crude prices are at a 12 year low, however the consumer price for gasoline for the Portuguese motorist will once  more be inflated next week by another cent per liter. (95 Octane)

WorldWatch chief analyst sees no reason for this latest increase as the Brent crude prices are at minimum 12 year low, the Petrol companies that operate in Portugal continue to have a concentrated increase policy supported by the government as energy prices are heavily taxed, even now with the new parliament elected Socialist/left block and Communist party the situation continues as motorist face constant increases making Portugal have one of the most expensive gasoline prices in Europe.

Brent prices have devalued more than 10%!!!

The average price for Regular 95 Octane is 1,362 euros per liter... The average price for Diesel is 1,088 euros per liter!!!

However if you travel on the more than 3000km of highway that exist in Portugal the consumer price is even higher, 12 cents per liter more expensive , all companies Galp, BP, Repsol and Cepsa practice the same inflated prices.

With these prices consumption will continue to decrease further in 2016!

Oil stockpiles have swollen to a record of almost 3 billion barrels because of strong production in OPEC and elsewhere, potentially deepening the rout in prices, according to the International Energy Agency.
This “massive cushion has inflated” on record supplies from Iraq, Russia and Saudi Arabia, even as world fuel demand grows at the fastest pace in five years, the agency said. Still, the IEA predicts that supplies outside the Organization of Petroleum Exporting Countries will decline next year by the most since 1992 as low crude prices take their toll on the U.S. shale oil industry.

“Brimming crude oil stocks” offer “an unprecedented buffer against geopolitical shocks or unexpected supply disruptions,” the Paris-based agency said in its monthly market report. With supplies of winter fuels also plentiful, “oil-market bears may choose not to hibernate.”

Crude has dropped about 40 percent in the past year as OPEC defends its market share against rivals such as the U.S. shale industry, which is faltering only gradually despite the price collapse. Oil inventories are growing because supply growth still outpaces demand, the 12-member exporters group said in its monthly report Thursday.
Total oil inventories in developed nations increased by 13.8 million barrels to about 3 billion in September, a month when they typically decline, according to the agency. The pace of gains slowed to 1.6 million barrels a day in the third quarter, from 2.3 million a day in the second, although growth remained “significantly above the historical average.” There are signs the some fuel-storage depots in the eastern hemisphere have been filled to capacity, it said.

Heating Fuel

“The stock buffer is bearish and will probably set a lid on how much higher prices can go in 2016,” Torbjoern Kjus, an analyst at DNB ASA in Oslo, said by phone. “There’s a sizeable risk that we could run totally full,” in terms of storage capacity, he said.

Stockpiles of diesel, used as heating fuel in Europe in the U.S. northeast, were at a five-year high of about 600 million barrels at the end of August. “This could protect the market from a supply crunch should there be a lengthy spell of cold temperatures,” the IEA said.

Production outside OPEC will fall by 600,000 barrels a day next year, with an equal-sized decline in U.S. shale oil, the IEA said. That contrasts with an expansion of 2.4 million a day in 2014 in total non-OPEC output. The IEA’s 2016 forecast for non-OPEC supply, at 57.7 million barrels a day, is 100,000 barrels lower than in last month’s report.

Demand Growth

Overall, the report shows a stronger outlook for oil markets next year because of the cut to non-OPEC supply and increase in the demand forecast, according to DNB, RBC Capital Markets and Sanford C. Bernstein & Co.
“While 2015 remains oversupplied, the picture for 2016 and beyond is becoming very favorable,” analysts at Bernstein including Oswald Clint said in a report.
Faltering non-OPEC supply next year means that the amount of crude needed from OPEC is moving closer to the group’s actual output. About 31.3 million barrels a day will be required from the organization in 2016, 460,000 less than it pumped in October.

Global Demand

Supply from OPEC was little changed last month at 31.76 million barrels a day as declines in Iraq and Kuwait countered gains in Libya, Saudi Arabia and Nigeria, according to the report. Near-record output from the group’s Gulf members means the organization’s spare capacity is “stretched thin,” the IEA said. OPEC ministers will meet on Dec. 4 in Vienna to review their current policy.
Global oil demand will climb by 1.8 million barrels a day this year to 94.6 million amid the strongest growth in India’s consumption in more than a decade, according to the agency. Demand growth will ease next year to 1.2 million barrels a day as the stimulus from cheap fuel fades and China’s economy remains “problematic.”

Brent Crude Hits February 2015 Levels

Brent and WTI crude oil

October Brent crude oil futures rose by $0.26 and closed at $46.63 yesterday. The US WTI and Brent differential fell to $2.04 per barrel on September 15, 2015. It’s the narrowest spread between WTI and Brent since February 2015.

US crude oil prices rose marginally due to the consensus of slowing US production and speculation of falling US crude oil stocks. In contrast, the speculation of rising supplies from Iran and the Middle East continue to drag Brent crude oil lower. However, the global crude oil market will be oversupplied in 2016. As a result, it will continue to put downward pressure on crude oil prices.

WorldWatch forecast for Brent and WTI

The WorldWatch released its monthly STEO (Short-Term Energy Outlook) report on September 9, 2015. The  agency estimated that US crude oil prices could average around $49 per barrel in 2015 and $54 per barrel in 2016. Likewise, it estimated that Brent crude oil prices could average around $50 per barrel in 2015 and $52 per barrel in 2016. This forecast suggests a spread of $5 per barrel.

The rise in the crude oil spreads benefits US crude oil refining companies like Marathon Petroleum (MPC), Tesoro (TSO), and Valero Energy (VLO) because they pay less than the global benchmark crude oil price. These stocks account for 7.12% of ETFs like the Select Sector SPDR Fund ETF (XLE). In contrast, a narrow spread benefits US crude oil producers. The roller coaster ride of crude oil prices also impacts oil and gas ETFs like XLE and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Oil benchmarks

Brent crude oil is the global benchmark for crude oil. It represents the receiving price of international crude oil producers. In contrast, WTI is the US benchmark for crude oil. WTI crude oil is priced at Cushing, Oklahoma—the futures contract delivery point for NYMEX crude oil. WTI is the receiving price for oil producers in the US

LOW COST GASOLINE..THE JOKE

Super95 is the most common type of fuel in Europe and is found on each gasoline station.
Portugal the price for gasoline are 14-19% more expensive  than the European average.

Portugal has now the fourth most expensive consumer price for Fuel in Europe 24% over the average price, and is one of the most expensive in the world.

This year alone the final consumer price at the pump for the motorist have increased over 20 cents per liter, in one of Europe’s poorest Nations this inflation of prices has a devastating effect on many families.

During the crude price drop over the last weeks the petrol companies in Portugal reflected to the consumer very little of that price drop which reached prices of 2009, in fact they keeped the increase on a weekly basis.

Companies like Galp,BP,Repsol and Cepsa, simply continue on an inflated  price range with the agreement of the government, in fact this is an election year but the Portuguese public continue to hear as they have done in the past four years how more and more taxes are created, in fact this is the only measures the politicians have to stimulate employment and growth, create more phantom taxes.

 

The Portuguese are the only Nation that pays Tax on Tax, the average worker has to work 8 months per year just to pay the Taxes.

There is no reason to have increased the consumer price for Fue (gasoline)l except the reason to exploit the public.

The announced growth will now be condemned to failure, all politicians and political parties have the same basic worthless ideas that will further degrade the badly structured economy. The present government or future governments should work for the people, the ones that elect them and not work and support companies who’s objective is profit at any expense.

 

Now the present Government has decided that all gasoline stations must have a low cost pump, one for diesel the other for un-leaded fuel, these so called low cost gasoline should have a minimum 15 cents difference to the normal additive product, however and according to today’s news, Cepsa is the first gasoline company To announce that it will only sell low costs products, the amazing news revealed is that the consumer costs per liter will be 3 cents difference !!!

 

In fact the low cost gasoline is just another way for the gasoline companies to increase their profit as they will be selling inferior product at almost the same inflated price as the normal product, what other reason would Cepsa have to change to low cost products if not an increase in profit.

 

These companies with the support of the government do as they please, the only objective they have is PROFIT at any cost ...

BP has the most expensive final consumer prices for the motorists; in the highways these companies have the prices even more inflated by another 3 cents per liter.

 

Oil Is Falling Again

Stop me if you've heard this one before. Oil is taking a dive today. Already at a six-year low, it's down nearly 3 percent on the day and is danger of dropping below $42 a barrel. Remember it was over $100 last summer.

And it seems that supply continues to expand. U.S. crude inventories probably rose last week, according to a WorldWatch News survey, US stocks rose by 10.5 million barrels last week.

However there is one European Nation Portugal, that continues to increase consumer petrol prices on a weekly basis, since the beginning of the year prices have increased for regular 95 Octane 20 cents per liter!!!

Does anyone have a reason why this happens?