Numbers down

Oil: To drop further?

Media release

Conception Bay South, NL, March 6, 2012- Consumers will see a slight drop in fuel prices this week as renewed concerns over consumer demand and the Greek financial crisis again have entered the investor markets. That news comes from George Murphy, group researcher for the consumer Group for Fair Gas Prices and MHA for the district of St. John’s East.

“Consumers will see the result of investor worries entering the markets again this week, and all in spite of escalating war talk against Iran and its stance on its nuclear programming. However, the European Union has offered to restart negotiations on Iran’s nuclear program, and that helped spark the slide. Numbers here show a drop of 2.24 cents a litre for heating and stove oil users is on the way for Thursday, while diesel numbers show a drop of an even two cents a litre,” Murphy said.

“Gasoline is projected to drop by 2.5 cents a litre as well with the market retreat. We have oil down by four dollars a barrel over the last week on an increased worry over a possible Greek default on the European Union bailout. March 20^th is fast approaching when the Greeks have to make their first payment on their loans, and that’s making investors as well as the banking sectors nervous.”

“Add to all this, the fact that the American Petroleum Institute also reported a 4.5 million barrel build in oil inventories this week that may be signifying a drop in demand for oil. The real news should come from the Energy Information Administration tomorrow when they report on overall oil and gasoline inventories. If those numbers show a build, then we could be looking at an extended retreat in oil prices that could translate into further consumer relief. Here’s hoping!”

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For more information, contact;

George Murphy

Group researcher

Consumer Group for Fair Gas Prices

Twitter: @GeorgeMurphyNDP