Rising Prices of Gasoline and Oil
The sudden increase in gasoline and oil prices has spurred much debate and conversation. We have noticed gasoline prices rise throughout the winter and in the US they have seen them rise for 35 straight days. Today Southern and Eastern Ontario, Montreal and Vancouver noticed another rise of 2.5 cents a litre (according to tomorrowsgaspricestoday.com).
Some industry experts blame the crude oil for the increases . “The increases we’re seeing now are entirely attributable to crack spreads,” Michael Ervin, a petroleum industry consultant at Kent Marketing Services Ltd. Crack spread directly refers to the differential between the price of crude oil and the petroleum products (ranging from: gasoline, kerosene, diesel, heating oil, aviation fuel, asphalt, etc.) which are extracted from it. From this process there is a profit margin that an oil refinery can expect by “cracking” crude oil, which is attributing to the rising costs.
More on this topic:
Gasoline Price Increase - CBC
Why Gas Prices Keep Rising Even When Crude Falls – Globe and Mail
Although there isn’t much the majority of us can do at the pump, there are ways to make the most out of it.
How to get the most out of your Gasoline. Tips for Drivers:
• Avoid jackrabbit starts and hard braking: it can burn as much as 39 per cent more fuel.
• Slow down — even a little. Tests have shown that most cars use about 20 per cent less fuel driving at 90 km/h than at 110 km/h.
• Avoid idling. Remember, the worst fuel economy rating is zero, and that’s what your fuel economy is while you’re idling.
• Consider a smaller engine. In a mid-sized car, a six-cylinder engine can burn up to 400 litres more fuel a year than a four-cylinder engine.
• Avoid using roof racks when not required. They have a major impact on fuel consumption due to the air resistance they add to your vehicle
• Avoid excessive weight in your vehicle. Every 45 kilograms of extra weight can increase your fuel consumption two per cent. If you have unneeded cargo in your trunk, remove it.
Source: Canadian Automobile Association
Market Updates:
• TSX -35.07 to 13,642.06 (Reuters) with investors unwilling to bid resource stocks higher despite commodity prices that advanced in the wake of strong Chinese economic data where they reported a rare trade deficit in the first quarter of this year.
• DOW +75.68 to 12,760.36
• Dollar +.64c to 104.42c USD
• Oil +$1.33 to $103.88USD per barrel
• Gold +$13.70 to $1516.90 per ounce
• Canadian 5 year bond yields markets +.09bps to 2.58. The spread (based on the MERIX 5 yr rate published rate of 4.29%) is above the comfort zone at 1.71. However spread between bond yields and the MERIX 5 yr unpublished rate of 3.99% down to the bottom of the comfort zone at 1.41.
