Oil takes a pounding

Look for more updates on this one again as oil prices take a pounding in the markets today.

Oil trading lower as a result of bad economic news out of the US with a lower than expected drop in US inventories, lower economic growth forecast and a higher than expected unemployment report all playing heavily in the markets.

WTI trading down, as of 12:00Noon Newfoundland time, by $4.64 US a barrel and Brent trading down by more than six bucks US to $107.46 and below what the Newfoundland and Labrador government's budget forecast of $108 US.

Gasoline is trading down by 14 cents US a gallon and heating oils also are trading down by 16 cents a US gallon as well.

Might be another good week on the consumer end, especially if the "Canuck Buck" stays up!

I'll be in touch on this one as well as it unfolds, so you might want to hold off buying any fuels for a bit.

Regards,

George