All pricing up...
Markets just don't reflect the reality

Watching the markets today?

Oil?

Yup. You know what's coming!...

If you happen to be close on empty right now, may I suggest a fill-up, because you know what you are going to see in the morning.

In the United States, you will be looking at another couple of pennies on a gallon while, here in Canada, you will see close to another two cents on a litre. Make note of the date on the blog here because when you come back again, conditions may have changed.

In Newfoundland and Labrador, while prices here won't be changed again until next Thursday, there is a guarentee that we'll be looking at close to another 4 cents on a litre at the pumps if all conditions stay the same.

Well, why?...

Today the markets are trading on speculation that there are going to be refinery issues this summer. That's not unlike when Hurricane Katrina blew in over the Gulf Coast in 2005. Back then, there was a promise of refinery disruptions that eventually came true. While nothing like that has happened yet, the markets are trading on future, perceived problems that HAVE YET TO OCCUR.

That's what's wrong with the gas pricing picture. We're paying for something now, rather than on what can actually happen.

That's like betting on the Toronto Maple Leafs winning Lord Stanley's mug; hardly likely this year but entirely likely in the next twenty years.

Yes, the Leafs will win the cup but it hasn't happened yet...

Traders are betting on your future. Let's hope they lose their shirts, but, right now, someone on the New York Mercantile Exchange is making a heck of a lot of commission and Big Oil loves them for it.

Conspiracy? Dunno about that, but certainly a symbiotic relationship!

Regards,

George