Fuel up/down again

[[TW]Fox]

High oil prices are a proven drag on the world economy and can lead to demand destruction as well as reduction in growth.

What we are witnessing now is something we've not seen for a long time in the oil market - the free market setting the price. All producers are producing as much as they can and the market is setting price according to supply and demand.

It will undoubtedly begin to hit supply at which point price will begin to rise and the cycle will begin again.

To suggest that $40 crude, a place we've been before just 5 years ago, is going to destroy one of the worlds biggest industries, an industry that was built on crude at a far lower price, is nonsense.

 

[[TW]Fox]

We have among the best engineers and designers on the planet. Worldwide, companies WANT to employ Brits because of their work attitudes, experience and knowledge. Often keeping them in the UK, but not always. There is a lot more to the industry here in the UK than actually just extracting the oil.

All of this is still required - if not more so. Extracting oil at the most efficient possible cost is something that requires skilled engineers and high technology. The world is not suddenly going to stop producing oil because the price is 'low'. If that did happen it would take almost no time at all for the price to rocket anyway!

I do not dispute that cheap oil is not here to stay. However whilst it's here it's a positive influence on our economy not a negative one. Oil production simply doesn't contribute enough to the economy for the current pricepoint to cause the UK more harm than good.

No sympathy for the contractors - they've been making enormous amounts of money precisely because they offer instant and easily expendable skill. The fact they could at any point be curtailed is why they've been able to enjoy high earning power which any half decent contractor has put enough of away.

I do have sympathy for any permanent employees mind.

If we were Russian we might be having a different conversation!

 

[[TW]Fox]

When north sea oil production was at its greatest, oil cost $30 a barrel... so why is $80 "normal"?

Much of the easier and cheaper to extract North Sea oil has been extracted. But $80 isn't 'normal'. It's not been sustained at that pricepoint for any real length of time.

 

[[TW]Fox]

20k for that is hugely more than a similar on shore job would pay.

 

[[TW]Fox]

It was an offer, 5 quid credit back for every 50 quid spend at BP until end of January.

 

[[TW]Fox]

Hopefully all the idiots buying diesels for small mileages may start seeing sense and switch over to petrols.

If only there were petrols to buy for those of us who cannot buy new

 

[[TW]Fox]

He's leasing it.

So why tell us he bought it

 

[[TW]Fox]

I think we always knew this was a temporary thing but I don't think anyone expected it to be this short lived. Brent crude is up 10% already since Friday.

 

[[TW]Fox]

Hi,
Just struck me how much petrol is costing again these days.
Any chance anyone out there working as a journalist for a major newspaper can publish an article about fuel prices?
It's a been a while since prices were last in the press, and it seems that prices only reduce when mass attention is drawn to them via the media.

Ta.

Why would an article help? Fuel prices have increased because the price of crude oil is up some 40% from the lows we saw the beginning of the year. The increase in price of the most important raw material is a direct driver of the cost of refined road fuels.

No mystery, no black magic, no conspiracy and no need for a newspaper article. The information you need to verify this is readily available.

http://www.bbc.co.uk/news/business/market_data/commodities/143908/twelve_month.stm

 

[[TW]Fox]

Then in a few more years it will rocket again, probably topping $200 a barrel and £1.80 per litre at the pumps.

$200 a barrel oil doesn't work, it's too much of a drag on the world economy and results in demand destruction. We saw this in 2008.

 

[[TW]Fox]

Bloody annoying that it took months for the low oil price to show up at the pumps but it takes days for the higher prices to show at the pumps.

Bloody annoying

Days? The oil price has been rising for months

 

[[TW]Fox]

124.9 for diesel in Maidstone, same as V-Power/Optimax/Nitro+ or whatever the hell Shell are calling super-unleaded this week!

I think you need to shop around a bit more..

 

[[TW]Fox]

The only difference is that Shell operate a franchise and a very, very small amount of stations may occasionally fill the V-Power tank with 95 on purpose instead

Wow, thats quite an allegation. What you are suggesting is illegal. On what grounds do you make such a scathing claim, surely not 'how the car feels' alone?

 

[[TW]Fox]

$1.95

I think everyone is bored of the American price updates now. We get it, your fuel is cheap

 

[[TW]Fox]

Nothing wrong with supermarket fuel.

I don't think I'll ever understand the bizarre thing quite a few people have against supermarket fuel. I've only ever really used Supermarket fuel in my cars - mostly due to convenience (Plymouth has no quality filling stations - the best we have is Esso or BP at 10p a litre more than everyone else) so it's Tesco or Sainsburys.

 

[[TW]Fox]

The best con surely has to be 'Premium Diesel'.

I'm not sure who 'Premium Diesel' is supposed to benefit but I can't think of many better diesel engines than the N57D30 and that doesn't require it....

 

[[TW]Fox]

No one will notice the different as the effect is over time. Dirty injectors and inlet valves with low additives fuels (supermarket).

It's worth paying 1p a litre more for decent oil company branded fuel.

If it was that simple I would.

Nearest Shell is 10 miles away and premium priced as a result of its location beside the A38. The smattering of BP garages we have are 7-10p a litre more unless you catch them on one of the bizarre 'Cut Price Fuel' days when they match the supermarkets.

 

[[TW]Fox]

I certainly noticed a drop in performance when I filled up with 87...

Of course you would, as it's below the intended rating for your car.

95 isn't.

 

[[TW]Fox]

Is it not the same trucks that supply both Supermarket and Branded stations? Feels like it is but I may be wrong.

What does that have to do with anything?

It's the same truck that supplies various things to Tesco, yet it contains different products

 

[[TW]Fox]

The problem is that even if oil was free of charge, refineries worked for nothing, tanker drivers drove free trucks for love and retailers expected nothing, a litre of fuel would still cost 70p a litre.