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Tuesday, March 19, 2013

Price changes for Thursday, March 21, 2013

Hi to all,

                Here’s what I have for this week’s price changes:

·         Heating and stove oils are pointing down by 2.01 cents a litre.
·         Diesel is also down by 2.5 cents a litre.
·         Regular gasoline is down by 3/10ths of a cent, while…
·         Reformulated gas is pointing up by 4/10ths of a cent.

Market highlights

  •  The Euro is in some troubles after the European central bank pressed an austerity measure on bank account holders to tax their accounts by close to seven percent In Cyprus. The move is seen as regressive by account holders who are being taxed to help finance another Euro bailout, this time for $10 billion US to Cyprus. The Cypriot government rejected that proposal that has since questioned the bailout from the European Union, putting the Euro financial sector on notice. The problems have a better chance of spreading in the form of a run on banks in other troubled Euro Union countries like Spain, Ireland and Italy.
  • According to this week’s inventory data from the American Petroleum Institute, inventories of crude oil are down by 413,000 barrels this week, hardly noticed in the markets. The US Energy information Administration comes out with its inventory report later on Wednesday.
  • How fast is Eagle Ford exploration in Texas growing? 2008 numbers showed just 358 barrels per day of production. Fast forward to today’s latest production number for 2012: 352,000 barrels per day, or close to 990 percent growth. The total production from the Bakken field in North Dakota as of December this year shows a whopping 769,000 barrels a day compared to just 136,000 in December of 2007, close on a 560 percent growth in production over a six year timeframe! 
  • Here’s something you don’t hear every day…A US oil company will start to ship off US crude oil for refining at a Canadian refinery. US based Valero Energy will start shipping 90,000 barrels a day to its refinery in Quebec! That’s how much oil is beginning to flood the US eastern seaboard and the coast of the Gulf of Mexico. Watch for prices to start a slight retreat on this word of a major glut of oil building in the US.

That’s it for this week!


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

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