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”.
-30-
For more
information, contact:
George Murphy
Twitter @GeorgeMurphyOil
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