Oil rises on economic news
Refined commodities rise also
Media release
Conception Bay South, January
22, 2013- Consumers in Newfoundland and Labrador will see a slight increase to
prices when the Public Utilities Board adjusts prices this coming Thursday.
While not alarming, the numbers this week may be an indicator that things are
starting to turn around in the North American and Asian economies. That news
from George Murphy, group researcher and member of the Consumer Group for Fair
Gas Prices.
“We’re starting to see some
good news coming from the Japanese markets where their government is on the
edge of announcing a stimulus program for its economy. Commodities traded
higher on the news as well as a clear policy shift from the government was
indicating it was readying its economy for some inflationary factors as a
result of the policy shift. They’re making a bet for long term growth,” Murphy
said. “And while Greece is not out of the woods yet, other European Union
countries are having a little more faith that Greece is directing its bailout
money exactly as it said it would. There’s a little more economic confidence
that the $130 billion Euro bailout will pay dividends in the end.”
“Germany
also saw some positive news as numbers showed an increase in investor
confidence. They were buoyed by the fact that US House representatives from the
Republican side will vote later tomorrow for an increase in the US debt ceiling
that will then delay the debt ceiling discussion until sometime mid-May.
The numbers
“Numbers are showing some
increases as a result of the increase in refined commodities as well as an
average $2 US increase in oil prices over this past seven-day session. I have
heating and stove oils to increase by 8/10ths of a cent a litre and Diesel
prices to rise by 1.1 cents a litre. Keep in mind that the winter months se
kerosene used in their blending mix, and that may offset what prices will
actually do. Regular gasoline shows an added 1.8 cents a litre, while the
reformulated blend shows an added 1.2 cents a litre.
Other market news
·
Alberta’s
treasury has been taking a beating. Just how bad is it? The province’s
finance minister estimated Alberta crude oil to hit $83US a barrel this year,
but so far, it’s traded almost 35% below last year’s estimate of $72 US. Alberta
crude oil is a rough $42 US a barrel
below WTI prices of $96 US as of today’s trading!
·
Brazil sees some
value in issuing offshore exploration
licenses by auction. Part of that reason may very well be the capital costs
involved, but the real reason is the high degree of interest in a largely
unexplored region off the coast that gave up part of an estimated 50 billion
barrel secret just six years ago.
-30-
That’s it for this week!
Regards,
George Murphy
Group researcher/Member
Consumer Group for Fair Gas
Prices
Twitter: @GeorgeMurphyMHA
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