Fuel up/down again

The supermarkets only do that when the world oil price falls.

It's currently rising fast because there is a surplus of oil, plenty of recession and so the market speculators are pushing the price up. Heading for $120 today.
 
[TW]Fox;22767777 said:
The supermarkets only do that when the world oil price falls.

It's currently rising fast because there is a surplus of oil, plenty of recession and so the market speculators are pushing the price up. Heading for $120 today.
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Surplus of oil pushes prices up?

I don't get it ._.
 
[TW]Fox;22767777 said:
The supermarkets only do that when the world oil price falls.

It's currently rising fast because there is a surplus of oil, plenty of recession and so the market speculators are pushing the price up. Heading for $120 today.
Click to expand...

Surely that should be the other way round?
 
Emlyn_Dewar said:
Painful to watch the rate at which fuel prices are increasing right now... :(
Is there an official reason as to why it's skyrocketed, or do they not need one?
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The official reason is that 3 months ago, oil hit a low of circa $90 a barrel. Today, it is almost $120 a barrel.

Key reasons why this has happened:

a) Iranian oil embargo and continuning nuclear standoff
b) Unrest in Middle East
c) Market anticipation of additional quantative easing

None of these things (with the partial exception of the Iranian oil embargo) have actually affected supply or demand of oil. Infact the economic situation is particularly poor right across the world including China which is suffering a big slowdown in its growth. The prices have risen though because market speculators can buy and sell futures contracts - contracts for the delivery of oil in the future.

They buy them on anticipation of these things causing price increases so they can resell them for more money. They dont want oil and dont take delivery of oil - they are merely trading the contracts. It is often a self fulfilling propecy as more and more purchases like this increases the price.

Effectively then oil is expensive because of what might perhaps possibly could maybe happen to the supply situation of oil, not what has actually happened.
 
[TW]Fox;22767777 said:
The supermarkets only do that when the world oil price falls.
Click to expand...

+1.

yep you often find other stations 2ppl cheaper than supermarkets as they pass the savings on quicker, they just dont spend £000's making a song and dance about putting it down.
 
[TW]Fox;22768221 said:
The official reason is that 3 months ago, oil hit a low of circa $90 a barrel. Today, it is almost $120 a barrel.

Key reasons why this has happened:

a) Iranian oil embargo and continuning nuclear standoff
b) Unrest in Middle East
c) Market anticipation of additional quantative easing

None of these things (with the partial exception of the Iranian oil embargo) have actually affected supply or demand of oil. Infact the economic situation is particularly poor right across the world including China which is suffering a big slowdown in its growth. The prices have risen though because market speculators can buy and sell futures contracts - contracts for the delivery of oil in the future.

They buy them on anticipation of these things causing price increases so they can resell them for more money. They dont want oil and dont take delivery of oil - they are merely trading the contracts. It is often a self fulfilling propecy as more and more purchases like this increases the price.

Effectively then oil is expensive because of what might perhaps possibly could maybe happen to the supply situation of oil, not what has actually happened.
Click to expand...

Kinda sucks since you're forced to pay it regardless to commute to work, you can't just choose not to buy fuel.

They'll start taxing us yearly for oxygen licenses soon :(
 
[TW]Fox;22768221 said:
It is often a self fulfilling propecy as more and more purchases like this increases the price.
Click to expand...

Best reason I ever saw was:

"price of oil went up today over fears of the price of oil increasing"
 
was £1.33 when i last filled up brought down to 83p (tesco vouchers) lasted me a good while went to fill up today £1.42 hell of a rise in just under a month.
 
Paid £1.41 yesterday as I was nearly empty after a ridiculous delay in Bristol.... the local Shell is a full 4p cheaper. My 100 miles a week don't really matter, though :p
 
a) Iranian oil embargo and continuning nuclear standoff
b) Unrest in Middle East
c) Market anticipation of additional quantative easing
Click to expand...

Its QE already done, QE ongoing and as of last night even more QE. Actual supply and demand of money not the oil, its 1 barrel per $100 or oil/money
So bit of basic maths tells us when the denominator decreases, the numerator rises just for the same value no increase needed in oil demand

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There was an explosion at an oil refinery in Venezuela last week as well. Although they don't export as much as the middle east they are part of OPEC so this may have an effect on prices.
 
MissChief said:
There was an explosion at an oil refinery in Venezuela last week as well. Although they don't export as much as the middle east they are part of OPEC so this may have an effect on prices.
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They don't really export refined products though do they? That facility produced refined products for domestic use. They export unrefined crude, which wasn't affected?
 
Some of the pictures are truly inferno like and while the Venezuelan government said it wouldn't affect exports far be it from a oil price speculator to use it to try and drive up prices.
 
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