Conception Bay South, NL, March 25, 2008 – “Don’t count on to see any massive changes to petroleum pricing this week despite the drop in crude oil pricing that’s from George Murphy of the buyer Group for Honest Gas Costs.
“Five out of seven days present a slight decrease of 2/10ths of a cent for heating and stove oils, while gasoline reveals solely a 2/10ths of a cent increase in pricing over twelve days. Keep in mind that heating-stove oils confronted interruption last week and that’s why those numbers are for 5 days of data.
“While oil traded lower on some disturbing economic information, oil’s related commodities still traded at near record levels. Pricing for heating, stove oils and gasoline all remained excessive with only slight fluctuations through the last week. Refiner capability dropped again to a low of below 84% which is an indication that refiners have turned attention to shutdowns for maintenance and the swap to gasoline. Capability has been measured as being very low regardless of the patron want for refined product this final winter and it’s almost as if there was a ‘purpose to protecting refining ability low.
“It appears that heating-stove oils are starting to lose their focus within the markets as numbers began dropping on the new York Mercantile Trade this week however, sadly, I don’t suppose it has been sufficient to start to warrant a big drop in distillates. More substantive drops in heating-stove oils needs to be realized over the subsequent couple of weeks. If I were a heating-stove oil consumer, I might rein again on my purchases and simply buy what is completely necessary to get by. What’s more essential in this equation is that we now need to see a substantive drop again in heating-stove oil numbers over the subsequent few months in an effort to avoid problems like we continue to see right now; traders making the most of the truth that they had been trading on a necessity and never on gasoline which may be less so.
“Next yr, government ought to develop home retrofit programs as well as supply assistance to consumers who might have the help in switching to totally different petroleum equipment company heating sources. Conversion to electricity may be more sensible and affordable for some in the long run if heating-stove oils proceed to be over-priced to customers.
“Numbers for gasoline are starting to achieve extra focus within the markets as of the start of this week and it’s a positive sign that traders and traders are dropping curiosity in heating-stove oils as a spot to make a buck. They’ve hit a brick wall known as ‘spring All eyes will be on gasoline as numbers for that fuel are already trading very excessive for this time of yr. If individuals are a bit of more conservative in their purchases, they might just be able to help keep a handle on pricing of gasoline for the summer despite traders actions. Otherwise, we might see a scenario like we just left with heating oil within the dying weeks of winter.