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Tuesday, November 16, 2010

Sorry I published late!I was out on the campaign trail. Hope you get most of the details on the news!
-George-

Oil starts downwards
Commodities unaffected by drop in oil prices yet

Media release

Conception Bay South, NL, November 16, 2010- Consumers in Newfoundland and Labrador will be paying a little more for gasoline for at least this next week, in spite of a drop in oil prices. That comes from George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

"Even though I've seen the slide in oil prices this week, coming down over five dollars since November 12th, I haven't seen the same thing happen with refined commodities", said Murphy. "What I have seen is a drop in the value of the Canadian dollar against the US greenback and that wasn't a good thing when the dollar difference is thrown in the mix. A drop of a penny against the US dollar equates to only a 4/10ths of a cent drop in fuel prices to Canadian consumers, so this weeks drop in oil prices mounted to nothing for Canadian consumers."

The numbers
"I expect very little change in distillate prices this week. Heating and stove oils show a modest 56/100ths of a cent increase, while diesel prices are showing just an added three tenths of a cent. Gasoline is expected to increase by 3.2 cents a litre on Thursday morning, so consumers may be best advised to top up the tank if they wish to tuck away a few dollars.

"If oil continues to drop, consumers can expect that prices for all refined commodities may follow provided that inventories remain up along with an elevated Canadian dollar. If the distrust of the markets right now is any consolation to consumers, this increase in gasoline prices may be short-lived.

Markets are anxious
It seems that there's some thought going into what evidence there is for any economic recovery out there While there has been a stall in US economic recovery within the US northeast areas, there is also considerable worry over Ireland's sovereign debt and the possibility of China raising interest rates. We're really not out of the woods on worldwide economic recovery just yet, and those feelings played with oil pricing this week. Investors still do not have the trust and confidence in the markets to take too much risk.

-30-

For more information, contact;

George Murphy
Group researcher/Member

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