Some entertaining stuff in this week’s Gibson report
I suppose there is increased demand for heating oil in winter months. A seasonal aspect.
With oil prices falling and the economy slowing most places you expect OPEC to reduce production to support prices. I wouldn’t count on increased production.
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If we are referring to Brazil, it is now Summer in the Southern hemisphere.
Just a random thought. Maybe Brazil normally gets some of petroleum products via a route that transits Panama Canal. Maybe that cargo is being made up by the US → Brazil runs
In the US oil refineries reset in winter to make more heating oil and in summer to make more gasoline. Summer means higher consumption of gasoline as people travel more.
Brazil can go either way. More oil consumption for for warmer weather.
Brazil goes from north of the equator to 32° south.
Tijuana, Mexico is about 32° north
Winter in Brazil does not get too cold.
The Captain
But when it does, coffee lovers suffer.
On 1 July, frost was reported in some Brazilian coffee-producing areas – not an uncommon occurrence from June to August in the southern parts of the country.
However, in the early hours of 20 July, a sudden, more severe frost hit the same regions again. Average temperatures in Minas Gerais, a major coffee producing region, fell as low as -1.2°C (29°F) – causing devastating irreparable damage to coffee plants.
DB2
Coffee blends:
The Captain
The Caracas Valley used to be a coffee plantation. When my grandfather took his morning walk around Parque Los Caobos (Mahogany Park) you could still find coffee shrubs among the mahoganies used to shade them. Caracas sits at the same latitude as Costa Rica and our coffee is on the par with Colombia and Costa Rica.
Ya learn something new everyday…
DB2
