Conception Bay South, NL, June 29, 2010- The numbers are pointing down. Not by a great deal, but enough that there won’t be a price increase this week, in spite of the market activity last week. That’s from George Murphy, group researcher for the Consumer Group for Fair Gas Prices.
‘I watched the markets closely last week and noticed the glee that must have been on investors eyes when word came of tropical storm Alex’s formation and track into the Gulf of Mexico region, and that put upwards pressure on oil and it’s related and refined commodities,” said Murphy. “But then I saw the downside the past two days when the markets started telling the true story of a stall in any world economy out there. It’s like I’ve been saying all along, that this market recovery is artificial and is boundless. That message has played in on oil prices again.
“Heating and stove oils show a decrease of 42/100ths of a cent, diesel down by a half cent and gasoline shows a drop of just three tenths of a cent. It may not be a big lot, but it may also be indicative of what’s to come next week.
“As of today, it seems that oil and its related commodities have begun another precipitous slide in price. I don’t know how long the message has to be out there before investors and governments finally get it that the world needs cheaper oil to aid any economic recovery efforts and prevent any hindrance to consumer spending. The world economy will not recover fully based on oil anywhere over OPEC’s old 2005 targets, or at prices for refined commodities that consumers and business can no longer afford. That’s the story that is being told in the world markets right now; that Big Oil has killed any prospect of immediate economic recovery happening. The real story of ‘invest in oil’ seems to have reverted to ‘divest from oil.’”
For more information, contact;
Consumer Group for Fair Gas Prices
By the way. The budget was based on $83 US a barrel WTI.
I don't know where they got the forecast, but they didn't ask me.
Numbers so far:
April/10: $84.82 US
May/10: $74.18 US
June/10: $75.33 US
Can you say "deficit"?