Credit Crunch keeps Oil Prices in Check
The last week has seen Oil fall to one year low of US$77 plus per barrel. This as the financial problems in the USA spread to accross the World forcing central banks in many of the G-7, G-20 countries to intervene. The analysts argue that the falling price of OIL is the result of weak demand, fears of future economic decline and unavailabilty of funds to make futures purchase given the credit crunch.
In Jamaica, the local currency is coming under increased pressure and has now slipped to J$73.33 to US$1. Interesting Canadian and Pound have both weaken against the Jamaican dollar with J$64.63 and J$127.66 needed to purchase CAn $1 and Pound respectively.
Despite declines in the price of OIL the weak dollar against the US will result in an slight increase in the cost to local consumers. However, given the level of decline in the price of Oil, in the whole equation, gasoline should be cheaper in the coming weeks.
PetroJam taking us for a ride?
There is an interesting post by a member in the forum that we all could check out. Entitled, PetroJam taking us for a ride. In that post, using data available the member argues that the declines in the price of OIL are not being reflected in the local market . You can read it at
http://jamaicagasprices.com.jm/forum/index.php?topic=15.msg21#msg21, and give us your views
Tags: Gas prices, Jamaica