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.

OPEC: Backed into a corner…

Nicely, I guess you possibly can say that it has been another ho hum week in the markets with nothing actually to report.

The traders kept buying and selling and the sellers saved promoting.

Consumers purchased…

As for oil, the telltale glut had them talking in Vienna, Austria last week. The discuss across the desk was largely from fellow OPEC members who, apparently, seemed to have been put in a scenario that I can nearly say assuredly, they have never discovered themselves in: backs into a corner as they face the terrible prospect of “competition”.

No unusual competition, thoughts you.

The competition does not come from only one nation, where years ago you could possibly measure the risk of strategic pooled oil reserves that may come lurking to the floor as an eager oil company could pump. It comes from virtually all over the place that one can find shale oil formations, from which the fracked risk surfaces. Not that I am a stable backer of fracking, mind you. There are simply too many questions around the safety and security of water that need to be answered and secured before we go “full bore” on drilling.

You have to be asking these questions too, before we lose even our own water right here in Newfoundland and Labrador via the “frack door”.

They call it “democratic oil”, just because virtually each nation in the world has considerably of a shale deposit whereby lies the golden juice of light, candy oil or natural gas reserves. It has actually forced the Saudi’s as well as other member OPEC nations to show their eyes toward “joining them, because they merely cannot beat them” petroleum equipment service membership. OPEC nations themselves, due to the low break-even worth of producing product from a fracked oil nicely, at the moment are compelled to affix the membership and start looking at lower price bottom line tasks in oil production, and that’s the new “the place, why and when” oil costs may make another strong retreat.

In the not-too-distant future, you can see that OPEC itself will begin to get into the game, ahead of getting commonplace pooled reserves to circulation, just because production costs to pound a gap in the ground are a lot decrease than “older” technologies can ship. Fracking could merely be the reason why OPEC can’t make a production minimize: It’ll merely cut itself out of what used to be a stable maketing opportunity for them. We’ll have the excuse to turn off the OPEC spigot.

You see, even to OPEC, they’re now forced to keep up with the Jones’s…

And that’s one other purpose why even the electricity markets aren’t what they was once…

This is what I’ve for value changes this week:
– Heating and stove oils to drop by 1.2 cents a litre.
– Diesel to drop by 1.6 cents a litre.
– Common gasoline to drop by 1.1 cents a litre, and…
– Reformulated blends present just a 8/10ths of a cent change in worth.