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Tuesday, March 23, 2010

Just a short note:
Don't forget that my margin for error with the numbers is close to three tenths of a cent. With the numbers you see here in the release in this case, there may be no price changes to the fuels I measure when you take that into account!

It’s like the markets are waiting for something
Fuel prices show very little change

Media release

Conception Bay South, NL, March 23, 2010- For the fourth week in a row, consumers can expect to see very little price movement at the pumps this Thursday when the Public Utilities Board adjusts prices. That’s according to George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

‘Numbers are showing no great changes for this pricing session. I expect heating and stove oils to decrease by 33/100ths of a cent, gasoline to drop by close on 2/10ths and diesel to increase by 2/10ths of a cent respectively. It’s almost like the markets have been waiting for more substantial news before investors withdraw or invest in the markets. It’s odd,” Murphy said.

“For weeks, the markets have been watching demand stall and crude oil inventories show insignificant builds, while refined commodities have been unsettled as well. One week we find a build in gasoline inventories and the next, a draw-down. The same goes for other fuels I measure. It seems like winter heating oil prices showed the same trend although they did come close to my predicted peak of 82 cents by February, they also stalled, reaching 78.67 cents a litre this past week. While diesel prices are elevated, again they also stalled for the past few weeks.

“Near as I can figure, the economic recovery remains spotty in some markets and there are countries out there that are predicted that will be facing the burden of taxing their consumers to deal with an increasing debt load. Greece is a prime example of what the markets are seeing as a few quirks with the worldwide economic recovery. Match that with weak demand for petroleum products and we have a “wait and see” approach apparent in the markets. While things are status quo for now, the question needs to be asked “just for how long before the bulls enter the markets again?”

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

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