£80 to fill up!

It can't go below £1 again because the Labour government took the opportunity of the post 2008 price crash to add a staggering almost 10p a litre onto fuel duty.
 
All of this can't be helping the markets..

Syrian troops in armoured vehicles entered Deraa, where the protests began, and opened fire overnight, residents said. A resident named Mohsen told al-Jazeera there have been five deaths so far.

• Syrian security forces and gunmen loyal to President Bashar-al-Assad have stormed the large Damascus suburb of Douma, shooting at unarmed civilians and arresting residents, rights campaigners said.

• Nato air strikes targeted the Tripoli compound of the Libyan leader, Muammar Gaddafi, early today, destroying a multi-story library and office and badly damaging a reception hall for visiting dignitaries. Gaddafi's whereabouts at the time of the attack on the Bab al-Azizya compound were unclear. A security official at the scene said four people were injured but not seriously.

• Rocket attacks on the besieged city of Misrata, in western Libya, have killed at least 30 people and wounded 60, a witness told al-Arabiya television.
 
It's an economics term. Even with a relatively price inelastic product such as oil, there will come a time when the price of the commodity is so high that people either stop using it or there is a noticeable reduction in its consumption.

We'll use extreme figures to illustrate my point.

How much petrol would you buy if it was £1000 a litre?

Probably absolutely none - therefore the notion that the price will keep going up and up for ever is flawed and in reality cannot happen. The price will reach a point where people either cannot afford it or choose alternatives instead. When this happens, the price of the commodity crashes.

Then the cycle begins all over again. But with a product such as oil which is limited in quantity, each time the price crashes, it'll crash to a higher 'bottom' than the previous time it crashed - so the long term trend is still up.

I think you'll see over the next 10-30 years quite huge variation in oil price. It won't simply rise slowly for ever, it'll rise quite quickly, crash, rise quickly again, crash again, etc.

It last happened in 2008.
 
[TW]Fox;18981270 said:
Text above.
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What's your take on new emerging sources of oil? Falklands has been spoken about a lot. Investigations by numerous companies are trying to prove that it's worth digging down there. If the UK starts to extract oil from the Falklands, would the price per litre of fuel decrease? Or are there other controlling factors which dictate the price of oil?

I know I'm asking you a mammoth question. You give me the impression that you have an economics background so I'd like to hear your view on this.
 
Ricochet J said:
What's your take on new emerging sources of oil? Falklands has been spoken about a lot. Investigations by numerous companies are trying to prove that it's worth digging down there. If the UK starts to extract oil from the Falklands, would the price per litre of fuel decrease? Or are there other controlling factors which dictate the price of oil?
Click to expand...

The price of a barrel of oil is set by the market - oil is traded on futures exchanges such as NYMEX and ICE.

Although in theory price is set by demand - price is the level at which demand and supply meet - with oil its more complicated as you've got OPEC limiting supply (Whether through artificial or production contrainst reasons is for another day) and you've got 'fake' demand from speculators.

So, unless Falklands oil pushed huge amounts of extra capacity onto the market it probably wouldnt make much difference anyway.
 
Paid €1.659 per liter for euro 95 today at the pump and that's one of the cheaper stations, some are €1.75 per liter.

Cost me 92 euros to fill up :(.
 
Duke said:
Oil is down a lot the last few days :) From $126 to $110.
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I thought the price was heavily influenced by bin laden going bye-bye and people panic buying expecting his death to cause world war 3 (or something)?

I think I'm going to get back on the train to get me to work and back. I'm doing £30+ for 75 miles a week which is too much considering a train ticket is a tenner for a week.

144.9p for preimum V-Power from shell. 10p more expensive than the regular stuff :mad:.
 
Joshy said:
I thought the price was heavily influenced by bin laden going bye-bye and people panic buying expecting his death to cause world war 3 (or something)?
Click to expand...

It dropped about $3 on the back of that then immediatly rose $3 again a few hours later.

This latest crash seems to be something deeper. I guess we'll see tommorrow..
 
snowdog said:
Paid €1.659 per liter for euro 95 today at the pump and that's one of the cheaper stations, some are €1.75 per liter.

Cost me 92 euros to fill up :(.
Click to expand...
Yeah, 95 is nearing VPower prices here.
So glad I sold the Volvo. When I saw my flatmate fill it from nearly empty, I laughed quite a bit when I saw the €117 total :D
 
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