There were a few days of downward pricing for commodities at the outset of this session; however, these were short lived and offset by the more frequent jumps. In the case of gasoline, the traditional peak demand summer driving season is only three weeks away. Upward pricing movement has resulted from ongoing declines in U.S. inventories and the fact that refiners are moving from winter to summer grades of gasoline, which comes at an increased cost. As well, many have shut for maintenance to prepare for increased gasoline production.

Market distillate (diesel and furnace/stove oil) prices have resisted falling from their highs despite moving into the off-peak demand season, particularly for heating fuels. Supplies are considered tight globally, and this has continued to place pressure on these products. The decrease in the maximum price for furnace oil in this province is the result of the removal of the seasonal adjustments for the jet fuel blend that was added this past November (see the Nov. 8, 2007 media release at www.pub.nl.ca).

Along with crude oil setting new record highs above the psychological barrier of $120 US per barrel and predictions of $150 to $200 US within two years, several other events have intensified concerns for global supplies of the products refined from it. Fuel supply disruptions, whether actual or feared, and sluggish output from major producing countries, such as Nigeria, Venezuela, Iran, Russia and Norway, have predominated recent market-pricing fluctuations. The removal of any oil from the market creates difficulty for making products, including gasoline and heating fuels, and limits available supply.