Hi to all,
Here’s what I have for this week’s price changes:
*Heating and stove oils to drop a penny.
*Diesel fuel to drop by 1.3 cents a litre, and...
*Gasoline to drop three cents a litre.
Oil and refined prices continue lower. Consumers to benefit
“Oil prices and refined commodity prices continue their retreat and consumers again will see the benefit”. That’s according to George Murphy, researcher with the Consumer Group for Fair Gas Prices.
“ The US Energy Information Administration’s weekly data last week showed a continued build in gasoline inventories that still shows refiners are producing more than what was needed in the face of expected demand that simply isn’t there---yet”, Murphy said.
“But we’re possibly coming to an end as small producers start to look at their break-even points as oil prices sink lower, so this next few weeks are going to be a huge test for everyone in the oil business. While further drops in prices are possible, they may be piece-meal compared to the last few weeks drops we’ve become accustomed to”.
News from OPEC also shows more oil than was expected coming out of Libya with that country producing more than 900 thousand barrels a day, rather than the expected 300 thousand a day in the previous month. While that may seem for some to be a small number, it throws a wrench into OPEC’s self-imposed cut of 1.2 million barrel a day that excluded both Libya and Nigeria due to damaged infrastructure from civil unrest.
“While ‘under a dollar’ a litre is still possible, we’d already be there except for the fact that there is still almost 9.8 cents a litre in extra taxes that we’re dealing with versus the same timeframe when we saw gas under a buck a litre”.
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