Oil Prices

Participant · 7 May 2011 at 19:20

Jokester said:
It'll likely sink back to $80 a barrel within a month or two again.

With fuel at the pump moving from 137ppl to 136ppl.

Jokester · 7 May 2011 at 19:25

clv101 said:
We're moving back to the ongoing depression, it's only been masked by increasing money supply recently. Why is today different from summer 2008? I'd say the fundamentals haven't changed. Gotta wonder though, where's the money going that is fleeing most commodities?

Did I read something last week that there was the biggest sell off in the commodities market ever?

Edit:
http://www.bbc.co.uk/news/business-13305462

Edit:
Haha, didn't realise it's the same article in the OP.

Cosimo · 7 May 2011 at 19:28

Biohazard said:
And what do you think?

We'll still be paying through our teeth for fuel. What do you think?

SymTax · 7 May 2011 at 19:42

Prices are ridiculous at the moment. Definitely needs to see a reduction.

Django x2 · 7 May 2011 at 19:43

It is dropping slowly. Expect to see some reductions at the pumps, probably supermarkets first

HangTime · 7 May 2011 at 19:54

Theophany said:
Even if it did, would have bugger all impact at the pumps. Petrol prices seem to increase with oil prices, but never decrease with them. Funny that, isn't it?

Not so, petrol prices decreased during the oil price drop a couple of years ago from the $147 peak. People like to have a good moan but if you look at the data petrol prices do change with oil prices, just not in a completely linear fashion (primarily due to tax increases). I distinctly remember unleaded falling from ~120p to under 100p a couple of years ago.

Below graph illustrates what I mean, this is for diesel but same applies for unleaded pretty much:
http://www.whatgas.com/petrol-prices/diesel-prices.html

Deleted member 66701 · 7 May 2011 at 19:57

A 10% drop in oil price will only result in a 3% drop at the pumps.

Slam62 · 7 May 2011 at 19:59

HangTime said:
Not so, petrol prices decreased during the oil price drop a couple of years ago from the $147 peak. People like to have a good moan but if you look at the data petrol prices do change with oil prices, just not in a completely linear fashion (primarily due to tax increases). I distinctly remember unleaded falling from ~120p to under 100p a couple of years ago.

Below graph illustrates what I mean, this is for diesel but same applies for unleaded pretty much:
http://www.whatgas.com/petrol-prices/diesel-prices.html

thanks for that graph interesting spike a couple of years ago, beware of the y axis though.

seems to show prices increasing though.

borich_planner · 7 May 2011 at 20:41

Things In Greece aren't looking good either. I think bad times are coming..

sparkymark75 · 7 May 2011 at 20:51

Thing is, if petrol prices rise and fall with the price of oil, how come actually buying oil to service you car never seems to get affected?

[TW]Fox · 7 May 2011 at 20:55

mparter said:
Thing is, if petrol prices rise and fall with the price of oil, how come actually buying oil to service you car never seems to get affected?

Because the cost of the raw crude is only a very small part of the cost of motor oil, which itself is a high margin product anyway.

A litre of Castrol Edge 0w30 for example is £10-15!

Amp34 · 8 May 2011 at 02:16

Jokester said:
It'll likely sink back to $80 a barrel within a month or two again.

Oil companies are not going to like that. I can see a lot of exploration being cut if that occurs again. (Considering a lot of new fields are only breaking even at around $60 a barrel)

hux · 8 May 2011 at 08:30

What i find laughable is when the cost of crude goes up, so does the cost of synthetic oil yet it doesn't use the stuff as a base :rolleyes:

Nice to see it falling, albeit by a bit. Don't learn do they, they push the price higher to rake in the profits and wind up crying about it when it drops as people can no longer afford it :rolleyes:

[TW]Fox;19081641 said:
Because the cost of the raw crude is only a very small part of the cost of motor oil, which itself is a high margin product anyway.

A litre of Castrol Edge 0w30 for example is £10-15!

HangTime · 8 May 2011 at 19:23

Slam62 said:
thanks for that graph interesting spike a couple of years ago, beware of the y axis though.

seems to show prices increasing though.

Another thing to bear in mind is 3 years ago it was $2 to the pound whereas now it is more like $1.6. So even if oil prices are lower than they used to be, the impact of that reduction isn't so great as you might have expected had the exchange rate been static.

Not sure how we're getting on with North Sea Oil these days but I suspect we have to import more than we used to.

Priapus · 8 May 2011 at 21:52

Jokester said:
It'll likely sink back to $80 a barrel within a month or two again.

I doubt we will be seeing $80 / barrel again for a long time. I think it will hover around 100a barrel and by end of the year 130 per barrel.

Fuel prices will also be on the up and up...don't see it coming down too quickly anytime soon. Sadly.

clv101 · 9 May 2011 at 09:35

HangTime said:
Not sure how we're getting on with North Sea Oil these days but I suspect we have to import more than we used to.

Continuing its steady decline. The latest figure I see from DECC is 62.8 million tonnes in 2009, down 51% from 1999's 128 million tonnes. We've been a net importer since 2005.

Dugganator · 9 May 2011 at 12:00

how long is the normal turn around for prices at the pump to drop. It seems today that most places have gone up in price by a couple of pence

[TW]Sponge · 9 May 2011 at 12:02

[TW]Fox · 9 May 2011 at 12:11

And back up we go.

ubersonic · 9 May 2011 at 12:17

[TW]Fox;19093180 said:
And back up we go.

Oil being up $1.49 a barrel this morning is hardly an instant recover but I guess you'll probably be right if your predicting the start of an upward trend...

Oil Prices

Deleted member 66701

Deleted member 66701