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Tuesday, July 31, 2012

Numbers down on world economic worries

Media release

Conception Bay South, NL, July 31, 2012 - Consumers in Newfoundland and Labrador should see a break in petroleum prices this week when the Public Utilities Board adjusts prices again Wednesday midnight. That news comes from George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

The numbers
"Numbers show a modest 1.08 cent a litre drop for heating and stove oils, while diesel numbers are down by 2.1 cents a litre. Gasoline is also down by 1.7 cents a litre as the world economic and financial situation in the European Union are showing strain to keep up momentum." Murphy said.

Conditions not good
"China is showing a further slowdown in growth as the last quarter up to June. The measure showed another decline in gross domestic production, the slowest in three years of burgeoning growth from the Asian nation. Meanwhile, the European Union is also experiencing difficulties as both Spanish and Italian banks experience difficulties. Spanish banks are seeking a further bailout from their central banks, and Germany is also not eager to provide further bailout money to Greece. The feelings run rampant through the markets in the European banking sector is that the International Monetary Fund is getting sick of helping Greece with more financial aid when they don't have proof of a pay-off through Greek austerity measures."

News from the Strait of Hormuz
"Some conciliatory language last week as well sent the markets lower as Iran says it still wants to have access to the Strait, and if it still does in the face of sanctions, it won't move for their closure. The move is seen as somewhat of a strategic retreat as talks continue. Oil prices rose last week on concerns of escalating tensions in the Middle East."

Canuck buck rises
"The Canadian dollar also rose on word of the financial situation in Europe, keeping slightly ahead of the US dollar. Both currencies have gained as investors sought safe haven from falling oil prices as a result of word on all of the above market news. The Canadian dollar has gained almost two cents against its US counterpart since July 24, 2012."

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices
Twitter: @GeorgeMurphyNDP


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