The Fall Price Of Oil...

The Mad Rapper · 12 Nov 2008 at 16:01

I remember there was some discussion about this a month or so ago. I posted that I had read a Morgan Stanley advisory predicting oil would fall to $50 a barrel, which was dismissed by several of you.

Looks like MS were right after all! With the continuing decline in demand it seems prices can only go one way at the moment:

http://biz.yahoo.com/ap/081112/oil_prices.html

GravyMonster · 12 Nov 2008 at 16:03

Go you.

Morba · 12 Nov 2008 at 16:08

be nice to see diseasel drop now, but its not happening :/

merlin · 12 Nov 2008 at 16:12

So far the start of our recession has brought cheap fuel and low interest rates.

Awesome, when's the next one coming?

Dup · 12 Nov 2008 at 16:12

Morba said:
be nice to see diseasel drop now, but its not happening :/

Diesel is a demand issue is it not?

The Mad Rapper · 12 Nov 2008 at 16:13

Morba said:
be nice to see diseasel drop now, but its not happening :/

Why do you think that is?

Isn't diesel cheaper to produce then petrol?

I've noticed it has reduced a little, but petrol prices seem to have come down far more.

The Mad Rapper · 12 Nov 2008 at 16:15

Dup said:
Diesel is a demand issue is it not?

I'd be interested to know what the proportion of petrol to diesel cars there are in the UK.

I suppose diesel trucks and vans will obviously add additional demand pressures though

Dolph · 12 Nov 2008 at 16:18

But...but...but people here said the rise was purely down to peak oil and would be irreversible and there was no speculatory involvement in it....

Did they lie?

[TW]Fox · 12 Nov 2008 at 16:18

Because of the way the production process works, to produce more diesel would mean we would also produce more petrol. We already produce considerably more petrol than we use - we are a net exporter of refined petroleum, mostly to the United States.

The US buys all the petrol it currently wants from us, it does not want more. Therefore if we increased production of diesel to bring prices back inline we'd end up with a surplus of petrol.

Morba · 12 Nov 2008 at 16:19

Dup said:
Diesel is a demand issue is it not?

with demand for petrol going down, production is following the downward turn, which in turn also means less diesel, so yes, it is a demand thing :/

[TW]Fox · 12 Nov 2008 at 16:19

Dolph said:
But...but...but people here said the rise was purely down to peak oil and would be irreversible and there was no speculatory involvement in it....

Did they lie?

No, its all fundamentals Dolph. People guessing that something would happen and then buying oil as a result isn't speculation. Honest!

And the Fabia vRS is a supercar.

Jez · 12 Nov 2008 at 16:46

Dolph said:
But...but...but people here said the rise was purely down to peak oil and would be irreversible and there was no speculatory involvement in it....

Did they lie?

Reading back the oil threads in SC is always a source of amusement. Naming no names

flat-6 · 12 Nov 2008 at 16:57

The current price is still expensive historically though. For decades it has hovered around $20bbl.

Unfortunately the market is pretty tight and I expect this is temporary.

Muffin` · 12 Nov 2008 at 17:21

flat-6 said:
The current price is still expensive historically though. For decades it has hovered around $20bbl.

Unfortunately the market is pretty tight and I expect this is temporary.

OPEC are going to have another emergency meeting to help finance the AM One-77's

*Moangroan* · 12 Nov 2008 at 17:31

so the barrel has dropped by 2/3 since its peak and petrol is still £4 a gallon. If it were truely linked to the barrel proce would it be approx 50p a liter now.....lol

[TW]Fox · 12 Nov 2008 at 17:52

*Moangroan* said:
so the barrel has dropped by 2/3 since its peak and petrol is still £4 a gallon. If it were truely linked to the barrel proce would it be approx 50p a liter now.....lol

There is a duty of 50.35p a litre on every litre of diesel and petrol. And then VAT on top at 17.5%.

The Mad Rapper · 12 Nov 2008 at 18:35

[TW]Fox;12883747 said:
There is a duty of 50.35p a litre on every litre of diesel and petrol. And then VAT on top at 17.5%.

Excuse my language but that really is ******* insane

The Government really are money grabbing ********! :mad:

Pete19s · 12 Nov 2008 at 18:57

The Mad Rapper said:
Excuse my language but that really is ******* insane

The Government really are money grabbing ********!

You sound supprised by that? Its a long known fact that its abit of a con.

TomO · 12 Nov 2008 at 19:12

The Mad Rapper said:
Excuse my language but that really is ******* insane

The Government really are money grabbing ********!

welcome to our world!!

The Mad Rapper · 12 Nov 2008 at 20:43

Pete19s said:
You sound surprised by that? Its a long known fact that its abit of a con.

I knew that the tax on fuel was high, I just didn't realise the true extent