Tuesday, February 17, 2009




No price changes this week


Finally...


After a short spike in prices at the start of this pricing session, due mainly to draw-downs on inventories, it seems that things are starting to loosen up on the markets again.


Prices are dropping for the first time in several weeks it seems. March trading for WTI is dropping and so is the cost of crude acquisition.


While I don't have numbers that show interruption to fuel pricing, stove oils are showing 2.42 cents a litre down. That's probably a good indicator of where prices will be next week. The kicker here is that I can't get a read on jet fuel, so there is a possibility that heating oils are down even more, possibly within interruption territory, although I have no way to confirm that as being so.


Diesel fuels are also pointing down further, almost 3.3 cents a litre.


Gasoline experienced the biggest spike at the start of this session but, after today's market move downwards, now shows a"break even".


No change at all.


I'm expecting gasoline to trade further down for the next week, based simply on the fact that the next inventory data available on Wednesday should show an increase in stocks. Gasoline itself took a nine cent a litre hit on the markets today based on the ever-worsening economic news. Again this week, I expect to see a drop in demand, unlike last week that saw consumption equal to the same time period last year, and that should figure heavy in the markets again.
The above picture (AP photo), an overhead shot from New Jersey, says it all I think!
For some reason, I think there's going to be some great deals on some models of cars in the coming weeks, particularly if you can wait for the next model year to come out!


Of course, anything can happen between now and next Tuesday when I have the final numbers in, so don't take all this as being "bible".


But, we can pray in the meantime!


I'll be in touch!


Regards,


George
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