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Gas and Oil

Gas and Oil

Posted: 08 Dec 2009 06:53 PM PST

No changes to prices this week

Numbers are starting a slide in the downwards direction, however, they aren't enough to warrant the use of the interrupter formula this week.

We should be looking at a decline in all prices next week however, even though right now numbers for distillates like heating, stove oils and diesels all show minuscule increases so far. The spot price for those fuels have nosed below the average set from the last price setting just last week.

Here's what I have so far:

  • Heating and stove oils show a bare 8/100ths of a cent up.
  • Diesel shows 'up' by the same 8/100ths, and...
  • Gasoline shows a decline of 1.9 cents per litre.

Again, I'm projecting declines in all prices for next week, unless inventory data out tomorrow shows some pretty heavy stuff ahead of Christmas or there's a dramatic reversal in the US dollar.

I'll be in touch with those changes.

Some observances:

  • Predictions by some market companies are calling for inventories to increase even though refinery capacity remains at near historic lows.
  • Oil prices are dropping as a result of some gains in the US greenback, making the US dollar more of an investment to be made over commodities.
  • Some talks of inflation to come is playing into the markets and that means higher interest rates. If rates go up, consumers will curtail on spending and that will eat into demand.
  • The inflation talk brings with it more worries of job losses and related problems with it. That in turn will play into the use of fuels and it's price by industry. More on the effects of inflation on oil prices next time around.

That's it for now!

Then again, that's enough, isn't it?

Regards,

George

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