After Greek decision…

Markets ask “What’s next?”

Media release

Conception Bay South, NL, November 1, 2011- Consumers in Newfoundland and Labrador won’t see much change at the distillate level after this week’s performance with oil prices, but gasoline will be dropping. That’s from the group researcher with the Consumer Group for Fair Gas Prices, George Murphy.

“My margin for error is three tenths of a cent, and my numbers for distillate are showing that there may be no change in prices with the distillate group of fuels. Heating and stove oils show an added 17/100ths of a cent increase in price while diesel shows an increase of just 1/10^th of a cent. Gasoline is showing a drop of just 1.5 cents a litre for this Thursday”. Murphy said.

“The markets have been thrown in a state of flux again with the European Union bailout plans for Greece. Yesterday, Greek president Papandreou threw water on a bailout plan that took months to put together when he inexplicably told the media that he would put the bailout plan to a referendum to the Greek people. It’s widely believed that the right turn by the Greek president will put Greece closer to a default situation on it’s plans to pay off debt and puts into question the viability of some European banks. Any default will likely throw the European banking system into crisis.”

‘I believe he’s laying out a challenge to his opposition in Greece. He has nothing to lose by putting pressure on his opposition in Greece to be forced to agree with the bailout plans, but he’s walking a fine line with his own people who would have to face most of the austerity measures at the same time. If he wins his mandate through winning the referendum to accept the terms of the bailout, then he will help ensure government stability in Greece while the country works through austerity measures. He’s also laying the fate of the world economy and the European banking system at the feet of the people of Greece. It’s going to be a hard sell to the Adriatic country, but it’s being done democratically in the place where it all started, and the people of Greece will have the ultimate say in whether Papandreou will survive politically.

“In the meantime, Greece also is holding rising prices at bay for now. Any likelihood of rising prices have been mitigated, at least for the time-being, as the situation in Europe takes shape in the coming weeks. While there may have been some slight improvement in the world economy in the past couple of weeks, there’s a new awakening of the gravity of the financial system in Europe that threatens t sink everyone back into recession again. It may be the one positive influence on saving consumers money this winter, the fact that Greece is calling the shot this time around. Certainly, this takes away any impetus on price increases in the short term.”

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For more information, contact;

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices

Twitter: @GeorgeMurphyNDP

Consumers will catch a break

European Union sovereign debt a factor

Media release

Conception Bay South, NL, June 21, 2011- Consumers of petroleum products will catch a break as European Union member countries, particularly Greece, deal with debt problems. That news comes from the group researcher for the Consumer Group for Fair Gas Prices, George Murphy.

Reality kicks in for investors

"It's back to reality for investors and speculators as ongoing concerns of any economic recovery married with European Union sovereign debt all reign over the markets. For some investors, the US dollar was the only safe haven when they pulled their finances out of oil in fear of a world slowdown caused by Greek, Italian and Portuguese debt-loads. Of real concern is austerity programs that could wreak havoc with the Greece debt and economic recovery efforts", Murphy said.

"Numbers show the start of what I feel is a 'more to come' scenario. If monetary problems persist and Greece doesn't meet her debt payment schedule, then we may see further drops in prices as investors pull out of oil. Right now, investors are caught in a tenuous catch-22 situation where they have no choice but pull money out of oil with a possible economic collapse in Europe. But, if they pour their money into the US dollar as a safe haven, they could cause a slowdown in US exports with an increase in the US dollar value, making their manufacturing sector face a slowdown."

"Markets are very 'bear' right now"...

Numbers

"My numbers show a drop to all fuels is on the way for Thursday morning. I have heating and stove oils down by 3.56 cents a litre while, diesel shows a downwards movement by 3.7 cents a litre, taking a little bit of relief in the distillate group of fuels."

"Gasoline shows a drop of 2.8 cents, but that number, as well as the distillates, do not account for any market volatility that is out there, and it has been volatile!"

"I'm hoping the news in the numbers will carry through for next week. Numbers are already showing a downwards trend, but its continuation will depend mainly on what happens with the European Union's handling of the money crisis amongst member countries like Greece. If she defaults on the first debt payments, it could be 'force majeure' in the marketplace, and we could see investors run. Numbers are already showing signs of another decrease on the way for next week if Greece continues to play in the markets again. Numbers are already showing an even two cents down for all fuels for next week, but it's still a little early to call it. We'll wait and see what happens."

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For more information, contact:

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices