Prices not sustainable for long
Consumers to see slight increases this week

Media release

Conception Bay South, NL, August 31, 2010- In spite of today’s retreat in oil prices today, consumers can expect to see a slight increase in most fuel prices when the PUB adjusts prices this coming Thursday. That’s from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“For the best part of this regulation period, oil prices climbed slightly above $75 US per barrel. With the exception of today, refined commodities also climbed, and that means some slight adjustments to prices, at least for this week. Today’s retreat in prices may be the forerunner of what is to come for next week.” Murphy said.

“I expect heating and stove oils to increase by 3.29 cents a litre, diesel to increase by 2.2 cents, and gasoline is showing an added 1.5 cents a litre at the pumps. I don’t think this will last long as the markets are again getting the jitters with any hopes of a strong economic recovery. I’m expecting a retreat in prices for next week, especially as an industry report is showing ‘glowing’ numbers in inventories of crude oil and gasoline.

“Inventories are at a high for the summer months and demand is mellow as compared to other years. The data is starting to form an even bleaker picture for any recovery in oil prices, especially considering the fact that inventories are at their highest since the Reagan administration and distillate inventories also sit at record levels. That could mean some moderation in prices to consumers if investors recognize the signs of trouble out there.

“The traditional end to the driving season is fast approaching and consumers may see some moderation in the weeks to come, and if investors see the signs, oil investors may be forced to yield. Maybe then, with cheaper energy prices, we might be expected to be witness to economic recovery. With oil prices high, we can’t expect recovery to happen readily.”

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For more information, contact;

George Murphy
Group researcher/Member

Drop in prices for consumers on the way

After a hectic week of oil trading, consumers will see a small drop in prices that would have been considerably more had there been some stability in the Canadian dollar.

There wasn't.

The Canadian dollar lost almost three cents against its US counterpart this week cushioning the drop to fuel prices here in Canada somewhat. If the dollar had to remain stable, we would have been looking at close to a three cent a litre drop across the board.

Here's what I have for this Thursday:

• Heating and stove oils will drop by 12/100ths of a cent.
• Diesel shows "down" by 4/10ths of a cent, and...
• Gasoline shows a drop of 8/10ths of a cent per litre.

With the Canadian dollar tied so closely to the price of oil, it dropped along with oil prices over the last couple of weeks. The Canadian dollar is known as a resource, or petro-dollar because of the relation between it and oil prices.

Hurricane Danielle
I'm not anticipating any effects to fuel pricing because of Hurricane Danielle. Right now it has been downgraded to a tropical storm, but is expected to pick up steam again and reaching hurricane status once again according to the National Hurricane Center. Its five day track shows it to be well off the coast of North carolina heading in a generally northerly direction on Sunday coming, well away from important oil infrastructure. There should be some concern to Atlantic Canada however as its track points it directly toward the US Eastern Seaboard and Eastern Canada.

That's it for now!

Regards,

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

Numbers confirm it
Substantial drop in prices coming to consumers

Media release

Conception Bay South, NL, August 17, 2010- Consumers in Newfoundland and Labrador will see a substantial drop in prices at the pumps when the Public Utilities Board adjusts prices this coming Thursday. That’s according to George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

“Markets in the United States are again reflecting the actuality of the economic situation, all against word of possible economic recovery. Most indicators are showing that there is a possibility that the United States is about to enter a second recession, or ‘double dip’. Consumer confidence is a record low and housing sales have plummeted indicating that consumers there just don’t believe that they’re out of the woods yet. As a result of this, oil prices took a pounding last week and that’s reflected in refined commodities as well.” Murphy said.

“All the data is in and it’s good news for the consumer as we head toward the end of summer. I expect heating and stove oils to drop by 2.95 cents, diesel to drop by 3.2 cents a litre. The good news on gasoline shows a drop of 3.7 cents a litre on the way for Thursday morning.

‘The real good news just hasn’t hit us yet. Here we are close to the end of summer and still no major hurricanes have developed that could have the potential to threaten Gulf of Mexico production. We’re fast approaching the five year anniversary of the Katrina and Rita hurricanes of 2005, which was an even more active hurricane year than this one so far. It seems the predictions of major storms this year is off a little, and will continue to be, with luck! If we can get past the middle of September without a major hurricane threat in the Gulf, we should be in line to see a further retreat in oil prices.”

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

Just a word to the wise...

Numbers here are showing substantive drops to all fuel prices that I check, and with one day of business left to recover, it certainly looks like the numbers will hold.

I'll be back later tonight with the official release on the numbers, but here's what I have right now:

• Heating and stove oils are down by 2.96 cents a litre.
• Diesel is down by 3.2 cents a litre, and...
• Gasoline is down by 3.5 cents a litre.

I imagine that, after today's business day, these numbers should show at least another two tenths down on top of these numbers. Either way, it's time to hold back a little.

Regards, for now!

George

Distillates up, gasoline is down for this Thursday

Hi to all...

Figured that I would keep this simple again!

Not too much change in the numbers although distillate prices are elevated over the past week, as predicted they would be, and they will be going up.

Gasoline, according to my numbers, will be dropping.

Here's what I have for this coming Thursday with all the data now in;

• Heating and stove oils show an added 1.27 cents a litre.
• Diesel shows an added 1.6 cents a litre, and...
• Gasoline shows a drop of 1.9 cents a litre.

Market highlights

• Oil continues to bounce around the $80 US a barrel mark, all in spite of the latest news on economic recovery. The US and China are both having their problems, numbers being reflected in China regarding inflation and numbers in the US reflecting dropping productivity and lower housing starts.
• The Canadian dollar lost close to two cents against the US greenback. Because the Canadian dollar is so tied to resources like the value of oil, it lost ground when oil retreated by $2 US over the past week.
• Refineries operated at a 91.2 per cent capacity last week. There's lots of product out there and it is being bought by consumers, that fact being reflected in the demand figures. gasoline demand is up better than two per cent, while distillates are showing increased demand as well.
• With lots of crude oil on hand, refiners bought little and that impacted inventories of oil, dropping by some 2.8 million barrels. Gasoline and distillate inventories increased however, making this the third week in a row for inventory gains amongst refined products. Unless something extraordinary happens in the markets right now, we're already past peak pricing for summer gasoline.
• The average price for West Texas Intermediate crude oil was $75.84 a barrel, the third month in a row that crude oil was below the $83 US a barrel estimate needed by the provincial government to show budget numbers as being on track. Crude oil now needs to average better than $87.50 a barrel for the rest of the year for the province not to have to worry over another budget deficit.

That's it for this week!

Regards,

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

Six day figures show numbers are up for distillates

No surprise for me...

Last week I noticed a trend being set, and it wasn't a good one. With the focus of the markets being mainly set on possible economic recovery, the numbers for oil have also been up.

Refined commodities up right along with it as well.

As I predicted last week, numbers are up for both heating and stove oils, and distillates like diesel fuel as well, albeit, not quite up to the two cent a litre figure I talked about, but still with one more day to go...

Gasoline shows "down" so far, and is likely to stay down when I have the final numbers tomorrow night.

Here's what I have so far, like I say, one more day to go:

• Heating and stove oils are up by 1.36 cents a litre.
• Diesel shows an added 1.7 cents a litre up, and...
• Gasoline shows down by 1.8 cents a litre.

The disturbing thing I'm seeing in all this is the rebound of heating stove oils and diesel numbers, all distillate fuels. It's bad enough that we see high heating prices during the winter, but now we're witnessing a run-up in heating oil prices during the summer when, traditionally, they have been down.

Diesel fuel is showing the same characteristic moves up, but most likely caused by a run-up in diesel use because of a proposed economic recovery that is doubtful.

I just keep wondering to myself: How long will recovery occur when we're talking rising energy prices? Cheaper energy means a more robust recovery, does it not?

I'll have the final numbers tomorrow night, but from the look of things, it's distillates "up" and gasoline "down" for Thursday morning.

Regards,

George

Consumers will see a small hit this week
More Increases could be on the way

Media release

Conception Bay South, NL, August 4, 2010- Consumers in Newfoundland and Labrador will see some slight increases to consumer prices this week when the Public Utilities Board adjusts prices. That’s from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“Oil prices have increased by close to six dollars US a barrel this week, so there is no doubt that we’ll get tagged at the pumps. The meteoric rise in oil prices, particularly over the last two business days, has also meant an increase to refined commodities. We are, however, being insulated somewhat by the rise in the Canadian dollar against the US greenback. That has kept the increase in refined product low compared to what is normally seen with any major increase in oil prices,” Murphy said.

“I expect heating and stove oil prices to increase by 92/100ths of a cent. Diesel will increase by 1.3 cents a litre, and gasoline to increase by 1.8 cents a litre, putting gasoline prices in the summer range of $1.10 and $1.14 a litre.

“The numbers are small but the last two business days have brought the averages up for distillates, meaning that we haven’t seen the last of possible increases to come there. It’s my belief that there’s a possible two cent a litre increase for next week, provided oil and distillate prices remain elevated for the next seven days, and barring any unforeseen changes to market conditions. Already, that’s beginning to form a picture of heating and stove oil prices being elevated at the start of the winter heating season. I’ll have a better handle on what to expect this winter later this month. It could also mean possible troubles with diesel fuel prices. With Newfoundland and Labrador heavily dependent upon the use of diesel to power the transportation sector, it could mean higher prices for consumer products because on increased transportation costs. Higher oil prices may be good for the provincial treasury, but not necessarily for the consumer.”

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For more information, contact;

George Murphy
Group researcher

Oil tops $81 US, but for how long?

While oil may have broken the $80 US per barrel mark, the questionable recovery of the world economy has to be one factor that can pull oil back under.

Some consider the spark that started the last recession to exactly that; oil at a price that was no longer affordable by the consumer and industry. Are we now at a point where consumers will start to ask themselves the question again: Can I afford high energy?

Here in Newfoundland and Labrador, consumers are already dealing with gasoline and diesel prices that range better than $1.08 a litre. For consumers and independent truckers, businesses that depend on the transportation sector, again they are all going to be forced to take measures to conserve energy and try to cut losses. It is again that the Canadian dollar will show it's strength against the US dollar as the dollar reaches parity. It may be the only measure out there to absorb the shock of rising oil prices.

With five days of numbers at hand, there is enough to show increased prices again for all fuels I measure, and the prospects of high oil will also have to be noted to users of fuel out there. Just how high will oil prices go before we see another bust?

I'll be back tomorrow night with the final breakdown in the expected price increases for this week!

Regards,

George

Not much change in the numbers

Hi to all...

Another quiet week in the markets means not much movement to fuel prices again this week.

Here's what I have coming for this Thursday morning when the PUB moves to adjust prices:

• Heating and stove oils should drop by 37/100ths of a cent.
• Diesel to drop by 4/10ths, and...
• Gasoline shows an added 8/10ths of a cent.
  

Some market highlights:

• Some lack of faith amongst consumers today resulted in a retreat by oil prices from a high this week of $79.30 US a barrel. Oil started out this pricing period at $76.28 US a barrel. What is known in the US as the Sentiment Index declined to a five month low on the US job outlook and that started today's oil sell-off. The expectation are that things are not likely to turn around for at least the next six months in the US as consumers worry over paying down debt.
• July 23rd broke in Europe with the report of several European banks failing their means test. The test was designed to test the ability of main European banks to raise funds in the event of an impending credit crunch. The European Union ended up having to come up with another 4.5 billion Euro to cover those same banks adding some questions about European economic recovery.
• Inventories of crude oil and its related refined commodities also showed gains in inventory, gasoline inventory increasing by 1.1 million barrels last week. While not a huge increase, it is possibly signaling weakening demand as consumers turn their eyes to the weak US economic recovery. Demand for gasoline remained at a stagnant two per cent over last years numbers.

That's it for this week!

Regards,

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

Consortium to build one billion deep water containment system

Word on the Bloomberg news site has it that Exxon, Chevron, Shell and Conoco-Phillips are investing $250 billion dollars each to build a deep water containment system that will be able to operate and contain underwater leaks as deep as 3050 meters (10,000 feet) in the Gulf of Mexico. Story here.

Is this collusion?...

According to the story, the system will be able to handle spills of close to 100,000 barrels per day and become part of any offshore deep water drilling program. It will involve piping the oil and gas to topside vessels to contain the spilled oil or gas. The system is said to be possibly adaptable to other areas where deep sea drilling is ongoing.

The story does not say if vessels designed for this use will be available at a few days notice or if they will be already on stand by at the drill site should an accident occur. It still makes one wonder what are the repercussions of not having such a system in place here in Canadian coastal waters, in particularly the Orphan Basin where the waters are 2800 meters, close to 9500 feet deep.

Do you think that Big Oil may be feeling the heat from politicians to erase any doubt about deep sea drilling? After the Gulf of Mexico disaster, do you think that voters might be having some influence over what government is deciding?

My personal opinion?...

This is an attempt to deflect any government from instituting any freeze on deep-sea drilling until safer drilling methods, and the cause for the Gulf disaster, have come forth. The United States and the European Union are already taking steps for a hiatus to deep sea drilling.

Of note here: It's awfully funny that they can collude to share a deep sea response like this but they can't share their clean-up strategy on the east coast of Canada, off Newfoundland and Labrador in the interests of company secrecy...

I'll be in touch!

Regards,

George

Numbers are all up by less than a cent

Nothing happening in the field of oil this past week. it's almost like the news has stagnated the markets somewhat.

From what I hear out there, there's still a bone of contention on whether there's a slowdown in the world economy again, and that may be part of the problem why any increase in oil prices has also stalled; until there is concrete news on unresolved financial issues worldwide. July 23rd is probably the date that everyone, investors included, is waiting on. It seems that countries like Spain, Greece and Italy will face the biggest test in handling their own debt and any resolution to their own financial crisis, the results of part of that test becoming known on that date.

Portugal, part of the European union's financial bailout just two months ago, faces an even deeper means test, all while Moody's has downgraded their credit rating again just last week.

In the meantime, here's what I have for this weeks price changes for Thursday coming:

• Heating and stove oils will increase by 79/100ths of a cent.
• Diesel shows an increase of 8/10ths, and...
• Gasoline shows an added 5/10ths, just a half cent.

It's been really busy around here the past couple of weeks, and it's bound to get busier with all the things going on. Some of you know what's on the go. i just want to thank the lot of you for keeping us all in your thoughts and prayers!

I'll be here next week!

Regards,

George

The eighty seven days

For what must have been a small amount of time in the scheme of things, plankton and various forms of pre-historic plant life had come together to form a thick, gelatinous mass under a blanket of sand.

In Mother Nature's own primeval way, that same layer baked, rotted and transformed itself into one of man's most wanted chemicals that was ever discovered. Oil, sulphur, hydrates, carbon, methane, propane, and the list goes on. Either way, what once was life and buried long ago under a part of earth's crust,now serves man in it's death, and caused more death while it poured forth from a wounded earth many feet below the Gulf of Mexico.

What was once probing it, the remains of some of the crew and the drill rig, Deep Horizon, now all resting on the bottom not far away from the rent in Mother Nature's skin, this prize to keep man's existence going. The pursuit of black gold we now know again holds with it a terrible price.

So, what of the cost? So what if we don't know what it has cost the people of the southern US coastal states, victims of possibly cut corners, unknown participants in a bold experiment at getting the black gold into corporate hands. What was the bold rush forward to garner the wealth from Mother Nature's perfect hideaway all about, that safety had to take a back seat all about?

For eighty seven days the taps flowed freely, ruining lives and economies. Families again displaced in a region that has of yet to recover from Hurricane Katrina and Rita not long ago. For eighty seven days part of a vast eco-structure of birds, fish, and other wildlife was devastated, possibly not to recover for years.

Finally, the taps that spilled the black prehistoric goo from deep down were turned off.

Eighty seven days late...

5.2 Million barrels late, if the 60,000 barrel per day rate is right...

Why is it that here in Newfoundland and Labrador we have to let Big Oil sally forth into the abyss of the Orphan Basin off the coast, again probing the depths and piercing the underbelly in the search for crude oil without first waiting to find out what caused the environmental disaster in the Gulf of Mexico? For the pursuit of an added few coins to the province's treasury, are we about to fore go safety again and throw caution to the wind in the reckless search for oil?

In a bold move the other day, the European Union has begun a pursuit of tougher environment rules for deep-water drilling. The new rules will ensure also that any company drilling in deep water can demonstrate that they are capable of handling and fixing in the shortest of time any disaster or incident that may befall them in the event of an accident offshore. Do we have that security in the Orphan Basin?

While we sally forth in letting the Orphan Basin drilling program proceed, Norway has voluntarily placed a moratorium on any exploration of deep sea areas until the full extent and cause of the Gulf of Mexico disaster has become known. The United States has again placed a two year pause in deep sea drilling until they explore the safety standards that have been set. What is the rush that Newfoundland and Labrador go against a world standard that is now being set, albeit because of a disaster that we have yet to comprehend?

For what took millions of years to put together in the form of black gold that lies deep beneath charted waters, should we also take pause and follow a new world deep sea drilling standard?

Do we also want to risk the offshore environment, the fishery, and other far away coastlines because we ignored the warnings from deep down?

Can someone please tell me why we can't stop-just stop- for a few and take stock of the venture we are about to participate in?

I'm sure that if there is a vast amount of oil in the Orphan Basin, that it can wait a few more years and brew a little longer before we do something stupid.

If they want it bad enough, they'll come back if we say that Big Oil is going to have to wait for just a little bit longer. Right now, it just looks like the province and the Canadian government are part of a foolhardy venture we can ill afford to see go wrong.

Tell me, what is the rush?

Regards,

George

Numbers up slightly
Canadian dollar pares a larger increase to consumers

Media release

Conception Bay South, NL, July 13, 2010- Consumers in Newfoundland and Labrador will see a slight upwards adjustment in pricing when the PUB adjusts prices this coming Thursday. That’s according to George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

“Oil prices increased close to seven dollars US since the last pricing adjustment and the Canadian dollar also increased in value with its US counterpart right along with it. The result is an increase in all prices I measure, but not a great one, considering that the dollar also gained close to three and a half cents also. That alone saved the consumer an average of close on 1.5 cents on every litre of fuel sold. Instead of looking at one cent a litre up this Thursday for gasoline for example, we could have been looking at a 2.5 cent a litre increase in prices instead,” said Murphy.

“For this Thursday then, I expect gasoline to increase by one cent a litre, heating and stove oils to increase by 1.3 cents and diesel to increase by 1.5 cents a litre. The numbers are still hanging just under what was predicted early spring for this summer’s pricing of gasoline of $1.10 a litre. As surprising as it may seem, distillate numbers are still higher for this time of year, probably as a result of diesel’s usage as a main transportation fuel in Europe and elsewhere. It still brings some concern here with the advent of winter usage of distillates. There’s very little time left for the numbers there to come down before investors put winter pricing pressures to bear. Here’s hoping the numbers go down further for the rest of the summer!

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

Not much change in the numbers

There's not likely to be too much change in the numbers this week in spite of the overall increase in oil prices.

Last weeks final day of prices showed a slight retreat in oil prices down to just under $72 US a barrel. Since then, oil has increased to just over $76 US and is now again, on a downwards trend yet again. After today's activity, it's down to $74.95 US a barrel at market close today.

Here's what i have so far. Again, six days of data and if tomorrow's data also is down, there may be no change at all with some prices;

• Heating and stove oils are up by 1.23 cents
• Diesel shows an added 1.4 cents, and...
• Gasoline shows an added one cent a litre increase.

So, what's up with oil? Why hasn't it gone bonkers as in other years?

Good questions, but there seems to be just one answer, and that one can be a loaded answer on my part, but it's best described in one word; trust.

Right now, and this is just my view, the investor is caught between the realities of a world market that has become "undefined". We used to know who could pay their bills and who in the world could spend. We used to know that it was a safe bet that we could take a summer vacation and still have a job when we came back from it. It is my view that this one-time reality has changed and that we simply are dealing in a world where we can't trust the economics of the world anymore, or, at least, not like we used to, and that reality is showing itself in the face of instability with oil prices.

When was the last time you heard of a recession where there were several world countries debt being talked about so openly? This world has become so small that information about debt-load has become a fixture of conversation right up there with who's going to pay the Visa bill next month.

We have countries so mired in debt; Dubai, Italy, Greece, Spain, Hungary, Portugal, Ireland and the United States just to name a few. While most of these countries have put in austerity measures, we still have to see the results of debt-load being paid down and a level of spending maintained by the same countries in question. We also have to see them maintain those payments back for loans to cover their debt-loads. Problem here is that I believe that investors can't trust their money on a concept that has yet to be carried out by the countries at question.

If that's the case, what we're witness to is a "wait and see" approach that investors have taken with today's world economy and probably why oil prices have stalled their regular, upwards summer climb.

It's probably another reason why there's a good chance we'll see another retreat in oil pricing too, at least until the markets are all something we can trust again. economies need oil, but economies need financial stability too.

I'll be back tomorrow night with the final numbers!

Regards,

George

Break for consumers coming as oil retreats

Media release

Conception Bay South, NL, July 6, 2010- Consumers in Newfoundland and Labrador will see a substantial drop in prices this week when the PUB adjusts prices this coming Thursday morning. That’s from George Murphy, group researcher with the Consumer Group for Fair Gas Prices.

“Oil showed a strategic retreat as the bad economic news told of a possible double-dip recession possibly about to hit the world’s largest consumer of oil. That, along with a retreat in the US dollar against the Euro also sent the signal for oil to lose ground, losing almost four dollars in the process. Jobs numbers down and gasoline inventory up, signifying weak demand for the product were also harbingers of possible troubles to come, not only with the US economic recovery but also with oil prices,” Murphy said.

“Heating and stove oils show a 3.55 cent a litre drop, 3.3 cents down on diesel pricing and a drop of 2.8 cents a litre for gasoline coming for this Thursday morning. I have to be a little cautious here as well, considering the US Independence Day holiday. Some of the data was not published so, I am going on the five days that I have and taking an estimate for the remaining days. There may be some subtle differences with the numbers this time around. Things should be back on track after the pricing adjustments have been made.

“The numbers I predicted for the run-up to summer have been right on so far. I predicted anywhere between $1.10 and $1.14 a litre for the first week of July and we’re there, and better yet, another drop in prices to carry us farther into the summer season. That should be a welcome break for anyone travelling at this time of year, and hopefully, another sign of things to come. I don’t expect to see a heavy play in pricing even if investors like to play the hurricane syndrome card. With demand weak, inventory building, and doubts about any economic recovery, there’s not much impetus to see oil increasing at this juncture.”

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

Numbers are down

You guessed it...

After this weeks trading session, the numbers will be down for next week and so will retail prices for the fuels I measure.

While I won't have the exact figures until later tonight, the data looks good. I expect heating and stove oils to drop close on 3.5 cents and diesel by close to the same.

Gasoline should go down another three cents a litre, according to what I have so far.

The trouble with data gathering this week is all centered on the US Independence Day holiday, which will offset the final numbers by a day. I should have most of the data by late this evening when I post the final press release and give you all the heads up.

Anyway, the word is : Expect a break at the retail level this coming Thursday morning.

I'll be in touch!

Regards,

George

Not much change, but the numbers are down

Media release

Conception Bay South, NL, June 29, 2010- The numbers are pointing down. Not by a great deal, but enough that there won’t be a price increase this week, in spite of the market activity last week. That’s from George Murphy, group researcher for the Consumer Group for Fair Gas Prices.

‘I watched the markets closely last week and noticed the glee that must have been on investors eyes when word came of tropical storm Alex’s formation and track into the Gulf of Mexico region, and that put upwards pressure on oil and it’s related and refined commodities,” said Murphy. “But then I saw the downside the past two days when the markets started telling the true story of a stall in any world economy out there. It’s like I’ve been saying all along, that this market recovery is artificial and is boundless. That message has played in on oil prices again.

“Heating and stove oils show a decrease of 42/100ths of a cent, diesel down by a half cent and gasoline shows a drop of just three tenths of a cent. It may not be a big lot, but it may also be indicative of what’s to come next week.

“As of today, it seems that oil and its related commodities have begun another precipitous slide in price. I don’t know how long the message has to be out there before investors and governments finally get it that the world needs cheaper oil to aid any economic recovery efforts and prevent any hindrance to consumer spending. The world economy will not recover fully based on oil anywhere over OPEC’s old 2005 targets, or at prices for refined commodities that consumers and business can no longer afford. That’s the story that is being told in the world markets right now; that Big Oil has killed any prospect of immediate economic recovery happening. The real story of ‘invest in oil’ seems to have reverted to ‘divest from oil.’”

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

By the way. The budget was based on $83 US a barrel WTI.
I don't know where they got the forecast, but they didn't ask me.
Numbers so far:
March/10:$81.14 US
April/10: $84.82 US
May/10: $74.18 US
June/10: $75.33 US
Can you say "deficit"?

Welcome Hurricane Syndrome season!

Blowhard investors smiling on the news

Day one of investors rubbing their hands together in eager anticipation is off to a good start as today's NOAA forecast calls for the possible formation of the seasons first gulf storm that "may enter" the Gulf of Mexico.

Oil, of course, is well up on the news and investors have been given something to smile about with oil prices for the last few days.

No word from Confederation Building, where news of oil below $83 bucks US a barrel had some people in panic, considering this years budget estimates.

Oil itself, while still below the finance departments forecast, is on the rise with the news of the possible disruption in oil production in the Gulf of Mexico that has yet to happen, and that's the problem that everyone concerned with economic recovery should have.

Possible disruption...

That's your money that some of these investors and speculators are playing with...

We'll be in touch if this "blow" by investors ends up resulting in increased prices to your pockets.

Regards,

George

Numbers are up.
So will prices this Thursday

Media release

Conception Bay South, NL, June 22, 2010- Consumers can expect to see some upwards adjustments to fuel prices this coming Thursday when the PUB moves to make the next pricing adjustment. That’s according to George Murphy of the Consumer Group for Fair Gas Prices.

“A three dollar movement upwards in the price of crude oil along with related, refined commodities has resulted in the numbers I have for this week. I expect heating and stove oils to increase by 2.46 cents per litre, diesel to increase by 2.4 cents per litre and gasoline to increase by 2.0 cents per litre,” said Murphy.

“This past week of market activity saw investors turn back to the Euro somewhat and that resulted in an increase in crude oil prices. An investment in the Euro by investor was seen as a sign that there’s ma turn-around in the fortunes of the markets, even though I still haven’t seen a clear indication that the austerity programming by some of the troubled Euro nations is working. It will be a while before we see that. To add to that, there was some comment about the debt-load carried by the United States that saw some investors withdraw from that currency.

“Even tough crude oil showed an increase in inventory last week, there was a slight draw against overall gasoline stocks that got some investors thinking positive about consumer demand increasing. I still believe counter to what I’ve heard out there. I don’t believe that the US consumer is quite ready to spend with more unemployed reported for last week’s measurement and there’s still a lack of evidence out there that consumers have an increased faith in a recovering economy worldwide. There’s also still plenty of skepticism out there about the world fiscal reality that has yet to play into the markets. What we see here is not reflecting the reality of the world markets as they should be right now.”

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For more information, contact;

George Murphy
Group researcher/Member
Consumer Group for Fair Gas Prices

Just a note for today...

I'll be back with all the numbers later tonight, but for now, it looks like all fuels I measure will be on the increase this coming Thursday.

Here's what I have so far, six days out of seven days of data:

• Heating and stove oils show 2.57 cents a litre up.
• Diesel shows an added 2.5 cents up, and...
• Gasoline shows an added 2.4 cents a litre up.

That's it for now!

George