Tuesday, October 16, 2012

Gas to drop, Distillate fuels to rise



Hi to all,

                Things should be back to normal after a maddening last two weeks on the markets…I hope!

                Here’s what I have for this week:
·         Heating, stove oils and Diesel all show up by 2.7 cents a litre. Keep in mind that kerosene is used in the winter heating mix, as well as in the diesel fuel. No numbers for kerosene available, so use this as a rough indicator on price direction!
·         Regular unleaded gasoline shows down by 2.1 cents a litre, and…
·         Reformulated gasoline show down by 2.4 cents a litre.

Yes, I am still tracking the reformulated number for accuracy, and also for the fact that, while not available in Atlantic Canada quite yet, it should soon be. Reformulated mixtures were approved for use in Canada back in December, 2010.

Some market highlights
·         International Energy Agency has cut the world demand forecast for oil, helping to drop back prices.
·         US inventory report from last Wednesday showed an increase in overall US production of oil, dropping back foreign demand.
·         Iraq produces close to 2.6 million barrels a day for September month, and expect 2.8 million BPD in October, far above previous records. 6.1 million barrels a day production by 2020 is forecast.
·         Economic and financial worries still plague the European Union with Spain again looking for more bailout money.

That’s it for this week!

Regards,

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

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