Oil prices rise on increased Middle east tension
Refined commodities to swipe consumers
Media release
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.
The numbers
“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.
-30-
For more information,
contact:
George Murphy
Group researcher/Member
Consumer Group for Fair Gas
Prices
Twitter: @GeorgeMurphyMHA
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