Numbers down

When will the volatility go away?

Media release

Conception Bay South, NL, November 22, 2011- Oil may be working up again from recent drops in pricing, but the numbers consumers will be looking at will hardly reflect that this week when prices are forecast to drop. That’s according to George Murphy, group researcher for the Consumer Group for Fair Gas prices.

“While oil has seen ups and downs this past week, it’s prices for refined commodities that have been steadily down over that time-frame, which is a little unusual. The markets are extremely nervous, and that will keep oil prices right where they’re at for the time being.” Murphy said.

The numbers this week

“Heating and stove oils are forecast to drop by 2.06 cents a litre, mitigating last week’s increase, while diesel numbers are also forecast to drop by 2.4 cents a litre. Gasoline prices are forecast to drop by 2.6 cents a litre, bringing retail prices in the immediate St. John’s northeast down to $1.18 a litre, if Costco follows suit.”

Analysis for the week

“Markets continue to reflect the problems some countries are having in dealing with mounting debt, with this week’s focus turning to the United States and another European Union country, France taking the spotlight. It was seen by investors that France was a standing example of what a stable European banking system should look like, but here are concerns, especially if France cannot absorb some of the losses in earnings from their part of the European Union bailout programs. While there is a lack of faith in the European Union debt situation, let alone the US problem coming to light again, don’t look for any runaway oil prices anytime soon. A retreat in oil prices may be exactly what the world economy needs to aid in its recovery. The truth about unaffordable oil has yet to play its hand this time around.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices