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Tuesday, July 06, 2010

Break for consumers coming as oil retreats

Media release


Conception Bay South, NL, July 6, 2010- Consumers in Newfoundland and Labrador will see a substantial drop in prices this week when the PUB adjusts prices this coming Thursday morning. That’s from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“Oil showed a strategic retreat as the bad economic news told of a possible double-dip recession possibly about to hit the world’s largest consumer of oil. That, along with a retreat in the US dollar against the Euro also sent the signal for oil to lose ground, losing almost four dollars in the process. Jobs numbers down and gasoline inventory up, signifying weak demand for the product were also harbingers of possible troubles to come, not only with the US economic recovery but also with oil prices,” Murphy said.

“Heating and stove oils show a 3.55 cent a litre drop, 3.3 cents down on diesel pricing and a drop of 2.8 cents a litre for gasoline coming for this Thursday morning. I have to be a little cautious here as well, considering the US Independence Day holiday. Some of the data was not published so, I am going on the five days that I have and taking an estimate for the remaining days. There may be some subtle differences with the numbers this time around. Things should be back on track after the pricing adjustments have been made.

“The numbers I predicted for the run-up to summer have been right on so far. I predicted anywhere between $1.10 and $1.14 a litre for the first week of July and we’re there, and better yet, another drop in prices to carry us farther into the summer season. That should be a welcome break for anyone travelling at this time of year, and hopefully, another sign of things to come. I don’t expect to see a heavy play in pricing even if investors like to play the hurricane syndrome card. With demand weak, inventory building, and doubts about any economic recovery, there’s not much impetus to see oil increasing at this juncture.”

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For more information, contact;

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

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