Hold off at the pumps!
Numbers show prices will drop Thursday morning
Numbers show prices will drop Thursday morning
News release
Paradise, NL, July 24, 2007- OPEC is talking about increasing production and gasoline spot prices have continued to drop over the last week. This means a possible break at the pumps to consumers this coming Thursday, according to George Murphy of the Consumer Group for Fair Gas Prices.
Expect a drop
“My numbers are showing that for six days out of seven needed for the interrupter formula to kick in so far; pricing is forecast to drop by 4.2 cents per litre on gasoline inclusive of taxes. No drop to other fuels is expected according to my records. To use the interrupter formula to increase or lower prices, we need to see a movement of four cents either way in the markets over seven days, not inclusive of taxes. My numbers show a 3.7 cent a litre drop and that’s within my margin of error of 3/10ths of a cent so, I’m calling the shot on this one. It’s the break to consumers that we’ve been expecting and initially told of last week when pricing was last adjusted. Tuesday’s trading day remains key if we are to see that drop but, gasoline is again trading down today. Expect a break Thursday morning. If it doesn’t, it’s a certainty that we’ll see a drop in prices next wee,” said Murphy.
Refineries pick up output
“Refiner capacity is showing increased growth and inventories are substantial enough now that, at this juncture of the driving season, concerns should be coming off that fuel and its consumption level. Forecasters of this weeks inventory report expect an increase in refiner capacity and that means more product out there on the markets. If that happens, the drops may keep coming barring any unforeseen circumstance like terrorism or hurricanes. I believe that last week was also key when we passed the half-way point of the summer driving season and there wasn’t a huge impact on overall gasoline inventory.
OPEC to pick up production?
“OPEC has expressed some concern over the high price of crude recently and that has sparked a slight sell-off in the markets as traders look at a possible OPEC production increase. That should bring some relief to heating oil users as the heavy oils that OPEC sells the most of, is directly linked to the heavier type fuels like jet, heating and stove oils. If they increase output, then we may see some upwards pressure taken off those fuels. We still haven’t seen those prices drop as we did in other summer seasons. OPEC members will meet, ironically, September 11th in Vienna, Austria.
Hurricane Syndrome remains a factor
Still lurking in the markets is the simple fact that we have gone almost halfway through the Atlantic hurricane season and we still have no hurricanes in our midst. Memories linger with all consumers when prices hit their epoch on Canada and elsewhere as almost 10 per cent of United States production and refining was affected. Traders will no doubt wing prices higher to consumers if hurricanes are forecast to hit any coastal region where production may be affected. While pricing will be pointing down in the next little while as driving season wanes, expect those same traders to use “Hurricane Syndrome” as an excuse to increase pricing at the pumps at anytime.”
-30-
For more information, contact;
George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices
Paradise, NL, July 24, 2007- OPEC is talking about increasing production and gasoline spot prices have continued to drop over the last week. This means a possible break at the pumps to consumers this coming Thursday, according to George Murphy of the Consumer Group for Fair Gas Prices.
Expect a drop
“My numbers are showing that for six days out of seven needed for the interrupter formula to kick in so far; pricing is forecast to drop by 4.2 cents per litre on gasoline inclusive of taxes. No drop to other fuels is expected according to my records. To use the interrupter formula to increase or lower prices, we need to see a movement of four cents either way in the markets over seven days, not inclusive of taxes. My numbers show a 3.7 cent a litre drop and that’s within my margin of error of 3/10ths of a cent so, I’m calling the shot on this one. It’s the break to consumers that we’ve been expecting and initially told of last week when pricing was last adjusted. Tuesday’s trading day remains key if we are to see that drop but, gasoline is again trading down today. Expect a break Thursday morning. If it doesn’t, it’s a certainty that we’ll see a drop in prices next wee,” said Murphy.
Refineries pick up output
“Refiner capacity is showing increased growth and inventories are substantial enough now that, at this juncture of the driving season, concerns should be coming off that fuel and its consumption level. Forecasters of this weeks inventory report expect an increase in refiner capacity and that means more product out there on the markets. If that happens, the drops may keep coming barring any unforeseen circumstance like terrorism or hurricanes. I believe that last week was also key when we passed the half-way point of the summer driving season and there wasn’t a huge impact on overall gasoline inventory.
OPEC to pick up production?
“OPEC has expressed some concern over the high price of crude recently and that has sparked a slight sell-off in the markets as traders look at a possible OPEC production increase. That should bring some relief to heating oil users as the heavy oils that OPEC sells the most of, is directly linked to the heavier type fuels like jet, heating and stove oils. If they increase output, then we may see some upwards pressure taken off those fuels. We still haven’t seen those prices drop as we did in other summer seasons. OPEC members will meet, ironically, September 11th in Vienna, Austria.
Hurricane Syndrome remains a factor
Still lurking in the markets is the simple fact that we have gone almost halfway through the Atlantic hurricane season and we still have no hurricanes in our midst. Memories linger with all consumers when prices hit their epoch on Canada and elsewhere as almost 10 per cent of United States production and refining was affected. Traders will no doubt wing prices higher to consumers if hurricanes are forecast to hit any coastal region where production may be affected. While pricing will be pointing down in the next little while as driving season wanes, expect those same traders to use “Hurricane Syndrome” as an excuse to increase pricing at the pumps at anytime.”
-30-
For more information, contact;
George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices
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