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Wednesday, May 05, 2010

Most numbers are up
Oil hits the highest in two years on Gulf concerns


Media release

Conception Bay South, NL, May 4, 2010- Consumers in Newfoundland and Labrador will see a slight increase in most fuel prices when the PUB moves to adjust prices this coming Thursday. That’s according to George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

What’s in the numbers?
“The numbers show a little volatility occurring in the markets over the last week, most notably when gasoline traded high on the possibility of s supply and shipping problem caused by the recent spill off the coast of Louisiana. The result was watching oil trade at a new two year record and related commodities also increasing. Numbers show gasoline to increase by just 1.1 cents a litre, heating and stove oils to increase by 1.78 cents and diesel to rise by 2.9 cents a litre”, Murphy said.

Two countries play a significant role in today’s price drop
“I don’t expect numbers to remain high for long however. There is still an underlying deep concern out there that the Greek debt crisis will spread to other Euro nations and that has almost ripped the bottom out of oil and resulted in investment in the US dollar rather than the dependence on crude oil Chinese production figures for consumer commodities are also down and that was probably linked to Chinese government efforts to slow down the economy from overheating and causing widespread inflationary problems there, efforts that appear to be taking hold. Of course, if production is down, so will be the demand for oil there.”

API data shows a crude oil inventory increase
The American Petroleum Institute (API) also released an industry report today that showed an increase in crude oil and related refined product that is permeating the marketplace right now. Their report showed an added three million barrels of crude oil while refined commodities like gasoline and distillates also showed “up” over the last week.
The US Energy Information Administration will release its report tomorrow and it is expected that their report will also provide the impetus to see a further drop in crude oil prices.

Canadian dollar loses ground
“The Canadian dollar has also factored in to this weeks numbers, losing two cents against its US counterpart in recent days. That should give Canadians some reflection on how much our dollar is linked to energy prices. The loss in strength may be good for some industries but it has cost consumers a little better than 1.5 cents at the pumps and the heating truck level.

Tires for Quebec?
“Why is there no ongoing experimentation with the use of tires as a possible additive in road construction here in Newfoundland and Labrador? Here we have the basis for a good binder in addition to asphalt and we’re not taking advantage of the recycling process. Instead, we are taking a potentially invaluable resource and shipping it out of the province where we’re causing a larger problem by having tires burned across the gulf in Quebec as a source of energy instead.
In the road making process, ground up tires are both used as an aggregate to the stone that is used for roadmaking, or is melted down and mixed with the asphalt as the binder to keep the aggregate together. It gives a longer life to roads, especially in colder climates, which means less maintenance and also ensures a steady supply to keep the cost of asphalt needs down to a minimum. Asphalt prices have skyrocketed in addition to crude oil prices.
Why haven’t Memorial University or the College of the North Atlantic been asked to do a study of the possible use of recycled tires in road construction here in the province?”

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For more information, contact;

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

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