Oil rises on economic news
Refined commodities rise also
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.
“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.
That’s it for this week!
Consumer Group for Fair Gas Prices