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Tuesday, July 26, 2011

Numbers down very slightly

Canadian dollar limits gain in oil prices

Media release

Conception Bay South, July 26, 2011- While oil prices have crept upwards in recent days, refined commodity numbers are showing a slight decline, and that should prove to be to the benefit of consumers when the PUB adjusts prices this coming Thursday. That’s according to George Murphy, group researcher with the consumer group for Fair Gas Prices.

“The Canadian dollar has gained almost two cents against the US greenback this past week, and that allowed for a slight retreat to show in the numbers for this week. All numbers, as modest as they are, are showing downwards for this week’s impending price change,” said Murphy.

The numbers

“Heating and stove oils show a drop of 25/100ths and distillate also shows downwards by 4/10ths. Gasoline shows a drop of 8/10ths of a cent on the way to consumers this time around.”

“Troubles with the deals between the Democrats and Republicans south of the border played heavy against the US dollar as investors became concerned that there would not be a deal between the Republicans and the US President Obama over US Debt. Investors have been pulling their money out of the US dollar as a result and sinking back their funds into other commodities and currencies, like oil and the Canadian dollar.

The Canadian dollar also showed gains against the US dollar as a result.”

“Sovereign debt of countries remains a factor that is playing into the markets as investors are not seeing too many currencies out there that are paying dividends out for the future. Trust in the markets is making a fluid situation that has also run up the price of gold in recent days. Until investors see some trust building from countries in dealing with debt, it’s almost like they’ll be looking for a safe haven to place their funds.”

“From what I’m seeing right now, there is really no place left to run besides gold. Uncertainty remains a factor playing heavy in the markets. Uncertainty means volatility.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

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