Good news at the petrol bowsers on the way?

I filled my ute up the other day with diesel and was gasping at paying $1.61 per litre for the black gold!

So it is good to see some positive signs on the way

World oil prices have slipped after China ordered industrial production capacity cuts in the face of slowing economic growth.

The government action added to market concerns about weakening demand in China, the world’s second-largest economy.

New York’s main contract, West Texas Intermediate (WTI) for September, finished the trading session on Friday at $US104.70 a barrel, down 79 cents from Thursday’s close.

The European benchmark contract, Brent North Sea crude for delivery in September, fell 48 cents to $US107.17 a barrel in London trade.

‘‘The news out of China that they are forcing a cut in excess industrial capacity is a very bearish factor for crude oil,’’ said John Kilduff of Again Capital.

China ordered companies in 19 industries, including steel and cement, to cut excess production capacity.Beijing’s industry ministry instructed about 1300 firms to shut down outdated facilities by September and eliminate excess capacity by year-end, Chinese state media said on Friday.

The government’s action, analysts said, could hit already weak manufacturing activity, which contracted to an 11-month low in July, according to HSBC figures.

China is the number-two oil consumption country but is number one in terms of the oil market’s outlook, Kilduff noted.

Read more:

A lowering ‘demand’ in China should surely show through here soon.

I read an article in the NRMA members magazine ‘Open Road’ this morning confirming that Canberra is constantly one of the most expensive places in Australia to buy petrol/diesel, including in relation to likened places like Wollongong

The NRMA have a great bowser busting page here


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