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Saturday, January 17, 2009

Update #1

Lost for words...
Prices may increase substantially by Thursday
Believe it?...
I don't either, but it certainly looks like gas prices will spike next week and I simply don't have a valid explaination as to "why".
All the indicators like inventory and consumption, are down and the economic news doesn't allow for the price of oil to sustain itself. There simply isn't reason to explain it when we've all seen oil drop from the mid 40's to the current $36 US a barrel..
All I figure is that some investors out there are putting all their hopes that demand will eventually pick up and that they're hedging for the future. A lot of people must be. I have to note as well that our local business channel here, BNN, has also started turning it's eyes towards the March buying contracts and they've given up on carrying daily oil pricing, focusing instead on the "months ahead".
Seems everyone is getting in on the act...
Anyways, pricing so far shows a possible spike in gasoline towards 6.1 cents a litre up, that's with five of seven days data recorded. You need a full seven days before the interrupter formula kicks in.
Be warned!...It's coming!

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