Happy Father's Day!
I promised everyone that I would post a few times before the next price setting to keep everyone up to date on this latest drop in oil prices.
So far, there hasn't been a large of a change as what one would expect. Given that I think that refined prices should have taken a pounding along with oil prices, I would have expected to see something in the order of a seven cent a litre drop in refined commodity prices, based on "Big Oil's theory of one cent per every dollar a barrel in oil prices.
It doesn't show itself in the numbers.
Here's what I do have:
- Heating and stove oils are down by 2.89 cents a litre.
- Diesel is down by 2.7 cents a litre, and ...
- Gasoline shows downwards by an even two cents.
I don't know why refined commodity prices didn't react in the same manner, but they did stay relatively stable all during this little "crisis" with oil so far. What it appears to be is that refined commodity prices are probably just showing an adjustment from the drop in acquired costs, and not reflective of the reality that there's some economic problems out there.
I think oil is waiting for more substantive news on a downturn in the North American economy more-so than what the markets are telling us about the European Union. That's almost off the mark from just a year and a half ago when oil retreated everywhere when even the North American economy showed signs of tanking along with the European Union's ongoing debt concerns with member countries.
In other words, we might have to wait a little bit longer to see something more substantive when it comes to that break in fuel prices we've all been waiting for.
Stay tuned. That news could be just around the corner...