Could be short-lived
Volatile week results in a break for consumers
Conception Bay South, NL, May 10, 2011- Consumers in Newfoundland and Labrador will see something that they haven't seen in a long time when they wake to lower prices this coming Thursday morning. That news is from George Murphy, group researcher and member of the Consumer Group for Fair Gas Prices.
"Enjoy the drop in prices for now, because it may not last long," said Murphy. "Prices are already starting a meteoric climb since last week's drop in oil prices and oil's refined commodities are leading the charge. Consumers in the rest of Canada will be tagged tonight with further increases in prices and numbers are showing a trend toward increases to come to consumers here for next week. I have never seen a week of volatility like this since the Katrina and Rita hurricane events of 2005. There's a lot of instability out there."
Prices to drop
"I have heating and stove oils to drop by 6.86 cents per litre, which is a welcome break to users of that fuel. I'm hoping that pressure will ease off the important heating oils, but there is already a small upwards movement in prices above my average for the last week, which is not good news for next week.
"Diesel fuel shows a downwards move this week by 6.9 cents a litre but is also trending upwards for next week's price setting, showing a two cent a litre increase so far
"Gasoline now shows a drop of 2.8 cents a litre, now a full four cents off what the numbers showed after just one day of data last week. It's indicative of what has occurred in the markets for the past week. Numbers for gasoline are already showing that, if the trend holds, consumers could see an increase coming of up to six cents a litre if the trend holds for the next seven days. The markets could in fact turn the opposite way again before then, so I'm insecure about saying what is the definite here for next week, but there is a trend developing."
Putting the screws deeper
Big Oil is having a field day and speculators are in for the ride now. Oil has dropped by sixteen bucks US the past week trading down from $113.93 US on April 29th to drop back to $97.16 US on May 6th, only to recover to $103.88 for today, May 10th. In that time, refined commodities have climbed back up to April 29th levels again with oil off the 29th mark still by ten dollars US a barrel. I can't find a reasonable explanation as to why that is, but someone out there in the realms of the speculator is now making a heck of a lot of money. Best thing is, is that they don't have to explain it to anyone. They're no longer accountable. I'm willing to bet that refined commodity prices will not show a retreat while oil still advances to it's old mark set last week, then you'll know."
"Other region of the continent will be in for sticker shock, particularly our US neighbours. They'll take a hit upwards tonight by thirteen cents a gallon and diesel will increase by another nickel US. Other areas of Canada will also take a hit tonight with Toronto prices climbing another three cents a litre and other regulated markets possibly taking a more substantial hit later this week. This volatility in the markets is playing itself North America wide. I believe that the economy is soon going to pay the price if there is no retreat in fuel pricing. I believe that we've arrived at a breaking point."
For more information, contact;
Consumer Group for Fair Gas Prices.