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Friday, September 28, 2012

Pay attention to this one!

Just to keep you all up to date on the markets…

The last three trading days have been very disturbing, so much so, that I have sent a note to the US Commodity Futures and Exchange Commission on what I’ve been seeing. So far this week, I have gasoline set to increase to consumers here by 10.9 cents a litre. Warnings are out on what to expect in the coming days in other areas of the country.

That number for Newfoundland and Labrador is no misprint!

Over the last three days gasoline has traded upwards from$3.18.36 on September 25th to todays $3.63.70 cents a US Gallon. Breaking these numbers down, prices have gone from 82.26 cents a litre on the 25th, 87.72 a litre Wednesday, 89.17 on Thursday, to today’s 94.52 cents a litre.

Average them out and take away my last week’s average, you get the 10.9/Litre.

I pray that I am wrong on this one, but the word is that traders over-leveraged the markets again today. The high volume of trades has distorted the reality of what prices should be here, drove refined gasoline prices over the edge, and, I believe consumers are going to get caught in the middle.

If this is not proof of what happens in being caught tied to a US trading market, then I don’t know what is. It has to be corrected by the federal government making moves away from it, and having Canadians see realities based on a Canadian condition.

Still two days to go here, but the writing is on the wall already for a radical move upwards in prices.

Regards for now,

George Murphy
Group researcher/member
Consumer Group for Fair Gas Prices
Twitter: @GeorgeMurphyMHA

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