Is there enough volatility in the markets this week?
Those of you watching the markets this week are probably asking the same question this week, wondering if consumers here in the province will see a drop in fuel pricing: Is there enough volatility in the markets right now, to warrant a drop in prices?
This week shows a drop of almost seven bucks a barrel US with corresponding spot prices dropping by nearly five cents on a litre after yesterdays market close. While my average for the last pricing session was set at 58.05 cents a litre, that average has touched near three cents after yesterdays market activity. The average for the preceding six days I now have at 55.38 cents a litre, a difference of close to 2.7 cents a litre.
Interruption requires that four cents a litre, up or down, from the previous price setting, are needed for interruption to occur.
That being said, again today, we're looking at gasoline trading down by another two cents a US gallon and that number does not include any market volatility that my numbers do not record.
There is a possibility that gasoline prices may be adjusted downwards after Wednesday night as a result of that, market volatility.
Other fuels like heating oils, stove oils and diesels, are also down but are less than the 2.7 or so that I have for gasoline.
Trouble here is that I also have numbers for the first six days that also shows greater than 3.4 cents a litre down on gasoline, taxes not included.
With oil prices collapsing again in the face of weakening demand and bad economic news, it may be well advised to hold back on any purchases you might want to make in the next day or so, that is, until we see what the Public Utilities Board is going to do this coming Thursday.
Those in other jurisdictions might want to follow the same advice: drops in pricing are on the way!
I'll know more after tonight's numbers come in for Newfoundland and Labrador, so stay tuned!
It's going to be close!