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Friday, June 01, 2012

Update #1

Market trading this week spells trouble for oil

Consumers to see a price break

Quick note after the market activities this week:

With oil taking a pounding all week, it looks like consumers will see some benefit, if the province’s treasury doesn’t. This week’s activity shows both West Texas intermediate and Brent crude's both with significant drops in prices.

Brent finishes the week below the hundred mark at $98.81 a barrel US, while West Texas finished the week at $83.23 US a barrel. What does this translate for consumers, with two business days to go?

So far:

· Heating and stove oils show a decline of 3.77 cents a litre.

· Diesel shows a drop of 3.9 cents a litre, and…

· Gasoline dropping by 3.3 cents a litre.

I don’t expect a huge recovery in oil prices next week. The bad news coming from the world economy right now just doesn’t justify any increase in prices. That being said, the expected drops in prices could very well be more substantial than what I have right now. They would have been more than what I have right now except for the drop of the Canadian dollar against the US greenback. The Canadian dollar has lost four cents against the US in three weeks of trading.

That’s it for now!

I’ll have another update on the numbers Monday night!


George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

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