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Tuesday, October 01, 2013

Price changes for Thursday, October 3rd, 2013

Hi to all,

Here’s what I have for Thursday’s price change:
·         Heating and stove oils show no change to prices.
·         Diesel shows just 2/10ths of a cent down.
·         Gasoline shows a small dip of 6/10ths of a cent a litre.

Market highlights
·         US government shutdown last night has no effect on this week’s numbers, but an extended shutdown will most affect prices downwards starting as early as next week.
·         Bloomberg predicts an increase of 2.5 million barrels this week with a total refinery utilization of 89.5%
·         Thaw in US/Iran relations drives oil prices downwards. Iran sanctions will add oil capacity to the markets if sanctions are lifted. Contingent on Iran stopping its nuclear program.
·         Survival of Come by Chance refinery contingent on lower prices for low gravity crude. If prices drop for heavy crude, refinery stands a better chance of survival. Lower crude acquisition prices part of the problem of losses to the refinery’s bottom line. If we lose the refinery, lack of competition could mean higher prices for consumers in the province with having one refinery in Atlantic Canada being a source of supply.

That’s it for this week! Back on track I hope!


George Murphy
Twitter: @georgemurphymha

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