Follow by Email

Tuesday, October 25, 2011

Weird week on the markets

Oil prices up but refined commodities down

Media release

Conception Bay South, NL, October 25, 2011- In spite of the price of oil rising by almost seven dollars US a barrel this week, consumers could be looking at a drop in gasoline prices instead. That comes from George Murphy, group researcher and member of the Consumer Group for Fair Gas Prices.

“It’s true. Numbers here are showing that, in spite of an almost seven dollar US climb in West Texas Intermediate(WTI) oil prices, consumers should see a 4.2 cent a litre drop at the pumps.” Murphy said. ”Of course, there is no accounting for any volatility that may be there that the numbers aren’t reflecting, but there is certainly a break for gasoline users there.”

“I don’t believe that I have ever seen this happen on the markets before. It looks like investors poured their money back into oil and treasury bonds south of the border, and didn’t put cash into refined commodities. I think they’re looking for solid ground, and the news from China and Japan on their economic growth seems to have signaled a return to WTI inventory numbers. It may be a case where investors didn’t want to see consumers driven to conserve in a forced run-up in prices as well, knowing the weakness of the markets. Refined commodity prices actually fell back after two weeks of gains. Other oil types like Brent, actually stayed relatively steady this past week in comparison.”

“The Canadian dollar also gained in value against the US greenback, reaching par earlier today before retreating to rest just slightly lower than its southern counterpart. That helped consumers gain back some of what was lost when the Canuck buck got burned against the US dollar when oil prices retreated just a few weeks ago. At that time, refined products rose in prices while oil prices fell.”

“Next week will be different. I expect to see some recovery in refined commodity prices with investors throwing money in just to catch up to where oil prices are going. No doubt, consumers will have to have a say in where prices will go. It’s probably time for consumers to impact inventory numbers again and send that collective message.”

-30-

For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Tuesday, October 18, 2011

Gasoline steady

Distillate prices up

Media release

Conception Bay South, NL, October 18, 2011- Consumers in Newfoundland and Labrador will not see a real big change in gasoline prices this week, but distillate prices? Well, they are another story with all numbers up. That news comes from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“It’s easy to see that we’re entering the winter demand season for heating and stove oils. We’re looking at a 2.68 cent a litre increase to stove oil prices, which could be a chief indicator of where heating oil numbers are going this week. Consumers in the northeast Avalon area could be looking at a full dollar a litre by this Thursday. With diesel also showing an increase of 2.7 cents a litre also, it’s not hard to figure out exactly where investors have placed their money”. Murphy said.

“Gasoline is only forecast to increase by 5/10ths of a cent this Thursday. That’s how much influence traders are wielding over distillate fuel right now. All that, in spite of a three dollar US per barrel increase in crude oil this week.”

“While crude oil inventories largely increased last week, supplies of distillate and gasoline all reported drops to inventories, again indicating an increase in consumer demand for that week, it leaves one to wonder why we’re looking down the barrel of the heating price gun. No doubt, the chase for profits is also going to drive prices to the point that investors are going to bleed the market dry amidst the laws of diminishing returns. They could burn out if consumers don’t buy at high prices. So far, they’re used to the idea that a cooling fall season will bring consumers in droves to make fuel purchases, and the shipping of consumer goods shortly before the Christmas buying season is also putting upwards pressure on distillates like diesel fuel. They know, and they’re playing consumers for all they can get before the economy gets soaked again and consumers stop spending.”

-30-

For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

PS: Did you notice gas prices around St. John's this past week? Prices for gasoline were as low as Ultramar's $1.27.9 cents a litre on Higgin's Line to Irving's price of $1.28.3 on Frecker Drive. In the meantime, the ESSO on Topsail Road was selling gas for $1.32.3 cents a litre.

Credit Costco with forcing the issue with the other majors out there, so much so, that stations across town are beginning to wield to the pressure!

Monday, October 17, 2011

Six days in...

Hi to all,
First off, thank you for all the emails of congrats I received after last weeks win at the polls.
I'll keep this one short and sweet until tomorrow night, as I know some of you are waiting patiently to decide what to do with your purchases.

Here's what I have so far:
Six days in:
  • Heating/stove up by 2.66 cents a litre.
  • Diesel up by 2.6 cents, and...
  • Gasoline shows an added 8/10ths of a cent a litre so far...
I'll be back tomorrow night with the final breakdown for Thursday.

Regards,

George

Wednesday, October 12, 2011


Oil prices up can't be good...

Hi to all…

I didn’t have time to get at the news of the week in the markets, or break down what’s been happening, let alone why it happened. Last night's election, I guess you could say, distracted me!

I will hopefully, be back to form for next week.

I am formally out of the loop on oil issues for this week…

But, I do have numbers. They’re not good.

First appearance, oil prices are up over the past week by about $6 US a barrel. That’s a clue…

Keep in mind as well that heating oils are now being calculated under the winter heating blend, so, my heating oil numbers will be off somewhat from what will actually happen as a result of kerosene in the winter heating blend. The stove oil numbers will remain the same.

Here’s what I have:

· Heating/stove oils are up by 1.98 cents a litre.

· Diesel numbers show a 1.5 cent a litre increase, and…

· Gasoline shows an added 4.7 cents a litre.

That’s it for now!

Regards,

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Tuesday, October 04, 2011

Again, my apologies for being late posting. It's a long day on the campaign trail!

Canuck buck takes it on the chin

Oil drops on financial and economic news

Media release

Conception Bay South, NL, October 4, 2011- Consumers would be surprised to find that in spite of a drop in oil prices, there’s no huge changes to fuel prices. In fact, there’s a slight increase to gasoline. That’s according to George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“What’s more apparent in this week’s data is how much of a beating the Canadian dollar has been getting against the US greenback. We’ve lost close on seven cents since September 21st . This pricing session saw us lose four cents against the US dollar and that figure is central in figuring out price changes. The loss is that extensive against the US dollar that, while numbers in US terms are down just slightly, they’re showing ’up’ for Canadians.’ Murphy said.

“Seven days data shows heating and stove oils to drop by just 15/100ths of a cent for consumers while the US price per gallon has dropped nine cents a US gallon. Diesel is projected to increase by a half penny.”

“Again, I will be cautious here. My numbers may be off as there’s plenty of market volatility out there! Six days of data shows the US price for gasoline down by seven cents a US gallon but a 1.4 cent a litre increase to Newfoundland and Labrador consumers as a direct result of the drop in the Canadian dollar. If the dollar had held all week, we would have seen a drop of close to two cents instead. That’s all in spite of oil prices for West Texas Intermediate dropping by $6 US over the pricing session. It’s not easy being too closely connected with the US economy.”

Fears over a default by Greece and the bailout plans for other European Union nations continues to rage in the markets and the economic news out of the US doesn’t help the situation much either. Bernanke’s comments about the US being perilously close to recession added fears of a drop in consumer spending sent oil prices downwards. If consumers aren’t going to spend, then a drop in demand in refined products isn’t far behind.

“What we need to see now is the Canadian dollar to stop falling and we’ll see refined commodity prices begin their retreat as well.”

-30-

For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices