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Thursday, May 19, 2011

Look out!
NHC announces its hurricane outlook

It's not even into June month yet, but already we're hearing from the US National Hurricane Center (NHC).

You know what that means...

The NHC is making dire predictions on hurricanes this year, calling for upwards of six major hurricanes of a category three or greater nature to form in the Atlantic. Their predictions say that winds from these hurricanes have the potential to blow in with winds up to 111 miles per hour or better.

But keep in mind the storms also do something else.

Hurricane syndrome
They're a harbinger of things to come on the oil front. No doubt that as soon as the first storm gets named and it's on it's way to the eastern seaboard, investors and the speculators will again step in and attempt to speculate on the disaster scenario, thus driving up prices again. I like to call the whole oil play they pull as Hurricane Syndrome.

Just another reason for "made in Canada" pricing...

How much attention will the markets give to the hurricane news remains to be seen.

I will give you my prediction; that someone is going to try to make a dollar from it!

See the release here: http://www.noaanews.noaa.gov/stories2011/20110519_atlantichurricaneoutlook.html

Numbers so far
In the meantime, it's only early into the next regulatory session, so, I'll echo a word of caution here. The numbers are again pointing downwards for next Thursday.

Here's what I have so far:
  • Heating and stove oils are down by 23/100ths
  • Diesel is down by a half cent, and...
  • Gasoline is down by 3.8 cents a litre.
Toronto and area will see prices down by another penny tonight as spot prices dipped again today to hit 72.8 cents a litre.

That's it for now!

Look for the next note on the numbers when you get back from the May two-four weekend.

Be safe!

George

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