Oil prices rise on increased Middle east tension
Refined commodities to swipe consumers
Conception Bay South, NL, January 29, 2013 - Consumers in Newfoundland and Labrador will see a noticeable increase to petroleum prices when the Public Utilities Board adjusts prices to consumers this week. That’s according to George Murphy, group researcher for the Consumer Group for Fair Gas Prices.
“There has been a noticeable rise in crude oil prices this past week with both positive economic news from the United States and also with increasing tensions out of the Middle East.” Murphy said. “ First we saw troubles in Algeria which led to a slight drop in production with last week’s attack on a gas and pipeline facility, and also on word of a possible supply disruption through the Suez Canal, as violence there has the leadership calling for a possibility of Egypt becoming a failed state, that according to the Egyptian defense minister.”
“Meanwhile, positive economic news coming out of the United States is reporting lower jobless claims, higher housing starts. Investors are betting on a turn-around in the US economy that may be a hedge-point for increasing consumer demand. That comes also on the heel of a surprise drop in gasoline inventories last week.
“Numbers show heating and stove oils to increase by 1.88 cents a litre, while Diesel fuel will increase by 2.1 cents a litre. Keep in mind the winter blending of kerosene into these fuels that might throw the numbers off slightly, as I cannot track kerosene numbers. Regular gasoline shows an added 4.3 cents a litre and reformulated blends to increase by the same 4.3 cents a litre. The distillate numbers are not showing a great increase, probably as a result of their gain in inventory as well as warmer weather along the US northeast coast this week that would help to lower demand for those products.”
More Market highlights
· OPEC production drops during December month by close on 400,000 barrels a day, keeping OPEC production at 30.4 million barrels a day for the month.
· The US dollar increased against the Canadian dollar this past week with the US dollar gaining value as investors turned funds over into the US greenback on a rising positive economic outlook. The Canadian dollar lost better than a penny against the US dollar.
· Most increases are pointing to a temporary increase in oil prices as a result of ongoing North African violence that ranges anywhere between, Nigeria, Mali, Algeria, Libya and Egypt.
· The Energy Information Administration in the US reported a surprise draw in gasoline inventories of 1.7 million barrels while both distillate and crude oil inventories increased, with crude increasing by 2.8 million barrels.
For more information, contact:
Consumer Group for Fair Gas Prices