Archive for October, 2007

Another Record Day

Tuesday, October 30th, 2007

Jamaicans woke up the news that Oil Prices yesterday hit a new record of $93.53 per barrel. The world economy could be in trouble if these Oil prices continue in the direction they are going.

Analysts say that the reason for the latest round of increases is combination of factors. These factors include a weak American dollar, oil production problems in Mexico and continuing tensions in Northern Iraq.

A weak American dollar is interesting as despite the American dollar weakening on the world market the Jamaican dollar continues to weaken against the it.

Increases in Oil prices and the resultant increases in Gas prices means that Jamaicans are bound to face rising transportation cost and direct and in-direct increases.

Here at Jamaica Gas Prices we continue to encourage our readers to conserve, plan your trips, avoid the traffic and shop for the best prices you can.

Jamaica faces Record Oil Prices

Friday, October 26th, 2007

Jamaicans will wake up the the news that Oil Price has hit record new highs. At the time of writing the price per barrel of oil was in the region of $91.05. This is indeed a worrying trend. In 2002 Oil Prices was less than $35 a barrel of Oil.

In fact the United States Department of Energy(DOE) states that in 2002 the average price of a Barrel of OIL is US $22.81. This means that Oil Prices in Nominal terms would have increased by 300% 0r more than quadrupled.

Jamaica has got to get on the road to conservation fast, re-evaluate the use of gas guzzlers and look and actively promoting fuel efficient vehicles. The signs are ominous and we can expect significant increases in the PetroJam (Petroleum Corporation of Jamaica) ex-refinery prices next week.

The impact of the movement of Oil prices will be far from positive.

Oil Prices Inch Up

Thursday, October 25th, 2007

Oil Prices inched up yesterday to close at US $88.31 per barrel, just a shade below the record price last week. In the industry continues to be challenged by Turkish- Kurdish confrontations and speculators waiting on the prices of Oil to move to U$ 100. The possible most significant factor is that reports are coming out that there was large and unexpected declines in U.S. crude and gasoline inventories last week catching Dow Jones Analyst of guard.

It seems that despite the their problems, Americans are gobbling up more Gasoline while the same associated press report says that Crude and Gasoline imports fell.

Possible good news for us here in Jamaica is that September 2007 Organization of Petroleum Exporting Countries(OPEC) agreed to boost production beginning November 1. 2007

Here in Jamaica, Gas prices continued their upward march. For more details read “Gas Prices Review for the Period Oct 18-24, 2007

Oil Prices Retreat

Monday, October 22nd, 2007

Jamaica today should breathe a sign of relief, if only for a little while,  as oil prices retreated on the world market, going to as low as $85.69.  Now this is good news given the fact that Turkey continues to prepare to do battle with the Kurds in Northern Iraq.  The reasons for the oil price retreat could just be profit take or traders realizing that the problem with Turkey and the Kurds has been over stated. We also hope that a peaceful solution can be found in the Turkish-Kurdish conflict so that he Turkish army like the Oil prices can retreat.

Interestingly one oil producing country Mexico, is not sing all the way to the bank. In fact according to a report in Bloomberg.com, Oil production has fallen by 8%  since 2004 to a seven year low. According to the Mexican President, Oil Reserves are drying up. The slump in production is hurting the economy despite record Oil Prices on the World Market.

We have not heard much about the search for oil lately but one suspects that things are not going to well.  If Jamaica finds oil in a location that is commercially feasible to extract that would be good but we need to seriously look at other forms of energy.  If we do find it we also need to ensure we put in place in place to deal with the situation that the Mexicans are facing when our Oil reserves run low.

Oil Prices continue upward march

Friday, October 19th, 2007

Once again the price of a barrel of Oil moved in an upward direction closing at US$89.51. This trend continues to prove very worrisome and it seems that a US$100 price tag for a per barrel of Oil will soon be a reality. Jamaican motorists should today see the full effect of the ex-refinery price changes at the pump as many Jamaican service stations receive deliveries for the weekend.

Once again traffic-jams were the order of the day as rainy weather mixed with poor road conditions continue to prove a nuisance. Driving in standstill traffic is a sure of decreasing your gas mileage. Motorists seem to be wasting a lot fuel doing nothing and not realising how much it is costing them.

Kingston and St. Andrew’s Mayor, Desmond McKenzie seems on the warpath with National Water Commission(NWC) over the utility’s activities on the corporate area roads. In the recent heavy rains, it is alleged that many motorists fell into ditches created when water washed out unfinished and unpaved areas where sewer pipe laying was occurring. The lack of signs and notification of road-works ahead has been a sore point for years and now that a public official is complaining about it, we hope there will be positive results. Motorists already have high fuel bills to deal with and really do not want or need the additional cost of fixing damaged vehicles caused by the actions or non-action of careless utility companies and their contractors.