Prices down...
Look for gasoline to drop by Thursday
With the latest sell-off on Wall Street and traders doubtful about the US bail-out, it certainly looks more likely that gasoline will experience another huge drop later this week, all under the guise of the interrupter formula.
So far today, gasoline is trading down close on seven cents per litre against a drop in oil prices of close to eight bucks US a barrel.
Seems that the markets are doubtful about the bail-out and thusly, are showing the fears of an economic slowdown in our midst. If there's lower demand because of a slowing economy, there's less use of petroleum products. That means lower prices for you and me.
As to how much things could slow?...
According to Blomberg, Deutsche Bank has cut its 2009 forecast for oil prices another 23% and they figure that the average price of oil could hang under $85 US a barrel for the remainder of the year ahead.
Just keep cutting boys, just keep cutting!...
In the meantime, hold back on any major purchases of gas at the pumps. I'll have a better prediction on exactly how much it'll be going down as early as tomorrow morning. Be looking for that.
Regards,
George
4 comments:
$85/barrel, this should be good for NL budget calculations but bad for Alberta tarsand projects.
I think it's great that you keep us all up to speed as to the rise and fall of gasoline prices in our province. However...I don't think you realize the impact your comments have on the consumer. If you say "wait to buy your gas" or "buy it now, the price is going up" people listen! These type of comments wreak havoc on small independent owners, we either run out of gas before the fuel truck shows up or we get stuck with thousands of litres that has to be sold below cost. It is very seldom that we as retailers reap the benefits of a price increase with gas in our tanks. It's challenging enough to be in business for yourself let alone having someone, such as yourself, with so much influence over the mind of the consumer.
It also wouldn't hurt if gas stations would drop their pricing ahead of any scheduled movement by the PUB when the numbers warrant it. Just because there is regulation in the province doesn't mean that you can't lower your pricing when numbers are down.
Why don't you do that and try for market share?
You obviously have no idea of the costs involved in selling gas at a gas station. It's not the reatiler that is making the huge profit, I'd like to see you run this type of business for a month...as for dropping the price because numbers are showing down...I'm not going to rely on your predictions, you've been wrong to many times. I'm just asking that you keep your comments of when to make your purchases to youself.
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