Gas prices to RISE overnight for Sunday Dec 21
With GasBuddy reporting that average prices in Canada have now dipped below $1 a litre, should the downward trend continue into the spring of 2015, the average savings to motorists this year will be $25 a week or $ 650 in just six months! Compared to last year’s heating costs, the average Canadian family could save an additional $ 1000 for the year, not to mention the lower costs of goods an services as a direct result of crude prices reflecting supply and demand fundamentals for the first time in over a decade. We are cautious of suggestions that this is all good for the Canadian economy as a whole. With the Global economy in a slump, the lower Canadian dollar doesnt help Canada sell more into a world with slackening demand.
WHY DIESEL PRICES HIGHER THAN GASOLINE (AT THIS TIME OF YEAR) ?????
As many of your are writing in about the apparent lack of downward movement in diesel prices, its helpful to know that as colder weather approaches and just after the Fall harvest begins, diesel use soars. So does its price as diesel is almost directly related to home heating oil. As such, diesel prices fall below gas prices from April to October and then catapult above them from November to April.
OIL’S COLLAPSE ISN’T ABOUT SAUDI ARABIA
– It’s the fleeing of the financial speculators complete with their own commodities exchanges, who after 14 years since the ill-advised deregulation of the US banking system and modernization of the commodities trades for Enron that led to the rapid rise and fall of crude in 2008; the Great Recession and the bloated energy prices we’ve paid since then. Indeed up until mid October, Goldman Sachs was still betting oil higher suggesting world supply was overestimated… only to reverse their position and positions in crude a week later.
The moral of the story ? … people who “forget history are doomed to repeat it”. In response to the causes of the Great Depression, oversight was introduced to prevent distortions that impede the real function of commodities markets; price discovery between a producer and a user of a given commodity, with a party in between the two to ensure the agreed price was “hedged” or insured to protect both parties the price the time of sale and transfer. Commercial Banks were to be separate from investment banks and they in turn were prevented from investing, much less owning, the physical infrastructure of or commodity itself. The 1933 Glass-Steagall Act was in response to this excessive no regulation speculation. So now is the Dodd Frank Act of 2010. Unfortunately global trades are beyond the reach of the US Act and index funds continue to dominate the price we pay for commodities… in spite of fundamentals: supply and demand
SO LETS AVOID THE OPEC BLAME GAME … the real players in crude’s fate are the ones who hold through paper 18 times the physical amount of oil available and they play commodities like stocks, not buy and sell, but buy and hold.
As we pointed out on Canada AM a month ago, falling oil prices are good for consumers, but spell trouble for both the national finances, provincial treasuries and the bank of Canada with the risk of deflation http://www.ctvnews.ca/business/supply-glut-plunging-gas-prices-near-two-year-low-in-canada-1.2053517
FOR MORE DETAIL ABOUT THE BEST AND CHEAPEST PRICES IN YOUR CITY, WE INVITE YOU TO GO TO GASBUDDY.COM OR DOWNLOAD THE GASBUDDY APP.
TGPT FRIENDS – LOOK FOR AN EXCITING ANNOUNCEMENT HERE IN THE DAYS TO COME ABOUT OUR EXCITING NEW CHANGES AND HOW WE ARE ABOUT TO MAKE WHERE AND WHEN YOU BUY YOUR FUEL, CHEAPER AND MORE CONVENIENT ……
NEW – FUEL WATCH
With so much going on in our lives, trying to figure out how to budget isn’t helped by the erratic peaks and valleys of gas prices. So we thought we’d give you a heads up on events that contribute to triggering price changes a few day before they happen. Feel free to use our forum page to add your own thoughts on what affects the cost of energy, which now takes up about 25% of your disposable income. FOR THE WEEK OF Nov 17 -21 THE FOLLOWING WILL DETERMINE GAS PRICES LATER IN THE WEEK:
- Japanese GDP and talk of recession
- U.S. Weekly Petroleum Inventory Report – Wed. 10:30 am
- Strength of Canada’s loonie vs. the US Greenback
- US FED and Bank of England publish minutes on stimulus
- US Labour stats Nov 20, China Manufacturing Nov 21
Come learn with us!