Fuel: prices down-for-the-count?

[errolanderson]

Maybe this is the start of an overall
pullback in farm input prices? But
fundamentals of the Cdn oil market
(Edmonton crude) appear quite bearish
right now (IMO).

There appears to be no quick fix to the
enormously wide discounts for Cdn oil
that apparently now varies between $20
to $40 per barrel right now. Alberta
producers appear having difficulty
getting their oil to premium markets.

And North Dakota alone is now
approaching producing 450,000 barrels
per day (similar to Ecuador's daily
production). The U.S. will soon produce
more than Saudi Arabia within the next 2
to 3 years. So where does this place
Edmonton heavy crude and the Alberta
budget?

An opinion but, Brent oil may be angling
toward $90 per barrel, while West Texas
might take a shot at $80 per barrel as
global economies slow in 2013.

But it appears on-the-surface that our
fuel prices may be down for a spell,
barring a major disturbance in the
Middle East.

Errol

[hobbyfrmr]

Ummm...not likely. I have better odds of being hit by an African satellite falling out of the sky, than oil /fert /chem/seed industry dropping prices and consequently decreasing PROFIT margins.

[errolanderson]

hobbyfrmr . . . you are likely right.

Believe there might be some input pressure
this go-around (ie: fertilizer) of
commodity market pressure in the months
ahead if deflation gains a foothold and
increased fert production kicks in.

Will keep looking up for that satellite .
. .

[Burbert]

Sheeeeeet. Inputs down this year? No fn
way. Grain companies and oilies r a greed
driven, greedy bunch a SOB. Fertilizer
and spray prices down too, total Bulloney
sheeeeet. Theys nose what we got fer our
grain ta date, cousin in some cases they
paid it. Theys gonna grabba lot er all of
it back this year fer shure fer shure.
Nice to dream aboot, low low inputs, never
ever ever ever happen agin.......

[Gofer]

Just got fuel this morning from our Co-op
Diesel $.949 including AFFA and GST
Marked gas $.878 with GST

Lowest price for retail pumps in Edmonton
$.899 at DOMO