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Tuesday, October 26, 2010

Hi to all...
Sorry I'm posting late this week. Tell the truth. You all thought I bailed, right?

George

Numbers show gasoline to drop Thursday

Media release


Conception Bay South, NL, October 26, 2010- Consumers get to see another drop in gasoline prices this coming Thursday. That’s according to George Murphy of the Consumer Group for Fair Gas Prices.

“Numbers show moderate increases to distillate prices but gasoline shows a drop. I expect heating and stove oils to increase by 64/100ths of a cent per litre, while diesel shows an added 9/10ths up. That’s been the trend with distillate as we get closer to the winter heating and Christmas shopping seasons.

“Gasoline is a little better as that fuel shows a drop of 1.3 cents a litre on the way, the second drop in two weeks. While all the numbers are not substantial, they do reflect the fluctuations in crude oil pricing the past week or so. I still expect to see oil pricing to hold close to where it is now, and for fuel prices to remain so as well, at least for the interim.

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For more information, contact;

George Murphy
Group researcher/Member

Tuesday, October 19, 2010

Slight drops in prices for Thursday

Hi to all...
Numbers are all in for the week.
For the first six days of the period, the numbers showed no big changes coming.But that was before todays market trading that showed a drop in crude prices of close on $3.50 a barrel.
Oil closed today at just under $80.00 US after concerns were raised with China raising its interest rates and an increase in the US dollar as investors pulled out of commodities and poured money into the US dollar instead.
The Canadian dollar also lost ground against the US greenback as a result of todays market moves, losing almost a cent and a half to settle at $1.03 for a US dollar.
The Canadian dollar started out this regulation period at par with its US counterpart.
The American Petroleum Institute (API), a US oil industry representative group, also are reporting a growth in US crude oil inventory increase in their report released today.

As a result of these factors, consumers in Newfoundland and Labrador will experience a slight drop in consumer prices for petroleum products I measure.

Here's what I have:
  • Heating and stove oils will drop by 8/10ths of a cent a litre.
  • Diesel will drop by 1.2 cents a litre, and...
  • Gasoline shows a drop of 1.2 cents a litre as well.

That's it for this week!

Regards,

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

Tuesday, October 12, 2010

Commodities still turbulent

Media release



Conception Bay South, NL, October 12, 2010- Consumers will still see some of the after effects of last weeks storm in the markets when the Petroleum Pricing Office and the Public Utilities Board move to adjust prices this Thursday. That’s according to George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“Numbers are showing down for distillates. Heating and stove oils show a slight drop of just 35/100ths of a cent, while diesel shows a drop of 1.2 cents a litre on the way. Gasoline shows an increase of two cents a litre coming for Thursday.” Murphy said.

“There’s still a lot of turbulence on the markets out there. One minute I’m seeing oil and refined commodity prices rise and then sink again. I think the markets are still jittery over any economic recovery, and the markets are displaying what I’ve said already about any market recovery; that a mere couple of weeks are too premature to call the shot on economic recovery just yet. As an example, there’s a record being set for property foreclosures in the US being reported on today and that was enough to stymie any increase in oil prices and signal a slight retreat.

“To add to that, there’s a prediction of an inventory build in the works when the US Energy Information Administration releases its weekly data this coming Wednesday and that is also showing in today’s retreat. Here’s to hoping that the jitters that are out there result in investors looking at the big picture instead of taking chances in running up prices that don’t reflect market realities.”

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For more information, contact;

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

Tuesday, October 05, 2010

Numbers up considerably
Consumers to get a hit on Thursday

Media release

Conception Bay South, NL, October 5, 2010- The sudden rise in crude oil prices will not be going unnoticed by consumers this coming Thursday when the Public Utilities Board makes the next pricing adjustment. Word of the impending increase in prices comes from George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

“Oil prices have taken a sharp turn upwards this past two weeks buoyed by positive economic news out of the United States and other areas, particularly China. Consumers have already seen crude oil increase by ten dollars a barrel since September 22 and that has also resulted in an increase to the price of refined commodities.
My numbers show that heating and stove oils will increase by 3.62 cents a litre, diesel shows an upwards movement of 4.5 cents, while gasoline is also showing a marked increase upwards by 4.5 cents a litre,” said Murphy.

“I’m not surprised to see another hit like this with oil prices increasing like they have along with the mood of the investor. I’m more surprised that we didn’t see a more substantive increase in prices during the last adjustment period as other markets saw, particularly as crude oil increased by five bucks a barrel the previous week. Numbers moved marginally, but not enough to warrant a large change to prices. What should worry everyone is the speed at which the increase has occurred. Questions have to be asked about the degree of investment in oil that is occurring as weighed against the economic recovery that is actually happening out there. It seems that investors are taking an awful gamble with such a short timeframe for positive economic news that is coming in. Just two weeks ago, there was some question as to how much economic recovery was taking place, and now we see this. It could be disaster for someone and a possible oil price collapse if the word on economic recovery out there was premature.”

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For more information, contact;

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

Friday, October 01, 2010

Oil, and the perfect storm!

Watch out for a substantial increase in fuel prices next week!

Numbers so far this week are pointing greater than three cents a litre up for all fuels I measure. Heating, stove oils, diesel and gasoline are all pointing higher amidst what I'm calling a perfect storm caused by investor speculation. Numbers are averaging a four cent a litre increase for most fuels right now.

Improving economic indicators like China growth in manufacturing, production quota compliance amongst OPEC members and a faltering US dollar against the Euro, are all painting a picture of an increase in prices that consumers are just not going to like next Thursday.

There is a danger on the part of speculators here however...

How far can prices for refined product, and oil for that matter, before consumers revolt and put a halt to any economic recovery? How far can prices go before higher prices begin to reverse an already tenuous economic recovery because it has removed important disposable income from the economy and the consumers hands?

My guess is that it's not going to be long before we see another retreat in oil because of the folly in the markets right now. Gold hasn't hit a record high for no reason at all...

Regards, and pass the word!

George