Archive for January, 2008

Oil Prices move down.

Wednesday, January 16th, 2008

Given the volatility of the Oil market, one wants to be careful when expressing the the fact the price of Oil has moved down over the last few days. The situation is so delicate that in  time it takes from the writing of the first word  of this article, to the writing the last word, the price of Oil could have spiked.

The analyst claim the reduction in the price of Oil is due to a few factors. One, the Saudi Arabians have announced a significant stockpile of Oil. Secondly, there are fears that the United States(U.S.) economy is going into recessions. Thirdly, the possibility of a recession is leading speculators to be think there will be reduction in the demand for Oil in the U.S.

Unlike Jamaica and Barbados, we have heard of reports claiming there has been a reduction in demand in the United States.

This is good news as it has give the Jamaican motorist a break for the first time in 2008.

Gas Dealers in Jamaica to pass on Increases

Tuesday, January 15th, 2008

This headline in the Jamaica Gleaner “Dealers to pass on gas price increase to customers” had me laughing. The question really is what have they been doing all along. Whatever increases they have been “Absorbing” must have been very minimal as as far as I can see, every week that that the ex-refinery price has increased the price at the pump has increased.

The article also raises the issue of a subsidy but the question realistically is from who. The government of Jamaica is in no position to grant any gas subsidy and I am not even sure they are in a position to reduce the fix tax amount currently on a litre of gas.

Troubled times lay ahead and Jamaicans will definitely need to revisit their budgets

Oil Hit $100 per barrel

Wednesday, January 2nd, 2008

Well it finally happen.  On the January 2, 2008 the price of a barrel of Oil reached a new record high of $100. According to market analysts, the reason for this is current instabilities in Negeria, Algeria and Pakistan.

This is not very good news for Jamaica, because the countries oil bill continues to  grow. It is time that the Ministry of Energy step up its Conservation Education program. Home user will have to watch their electricity consumption as the Oil component is a large part of that bill.

As usual we will be watching the Gas Prices and hopefully we will be able to keep this site up and running on a regular basis during 2008.

Happy New Year

Wednesday, January 2nd, 2008

Firstly let us say happy new year to all and wish you all the best for the new year