Fuel prices

[bozmandb9]

What's the general consensus on fuel prices? I guess people are relaxing a little about them for the moment, probably a little more than they should do!

I'm pretty sure that we'll see Oil rebound very strongly before too long. I think the Saudi's are doing the USA a favour, whilst at the same time killing off the competition with low oil prices killing investment in oil extraction across the world.

Once they decide to change course, I can see oil shooting up to new highs. I can't imagine the Saudi's will allow the low prices to continue for more than a few months, in any event.

Hence my LPG conversion!

 

[whitenemesis]

And hence your viewpoint?

Personally I don't really give much thought to it all. Not much I can do but to choose to pay or not..

 

[Howard]

I'd rather sh!t in my boot than convert my car to lpg

 

[Dryce]

Hence my LPG conversion!

LPG prices reflect oil prices but without the same proportion of tax - so they can be more volatile % wise than petrol prices.

 

[whitenemesis]

LPG is definitely more volatile than petrol...

 

[Dryce]

I'd rather sh!t in my boot than convert my car to lpg

Is that because it's cheaper to fuel it on methane using that source?

 

[Westbarn1]

Well there is no doubt fuel prices will go up, just a matter of when, meanwhile I'm enjoyed the price drop whilst its there. Filled up my heating oil tank last week, the price difference from last time was amazing

 

[bozmandb9]

LPG prices reflect oil prices but without the same proportion of tax - so they can be more volatile % wise than petrol prices.

Possibly, I think last time I was buying LPG, I was generally paying 70 pence per litre, now I can buy it at 50 ppl. Still this just means I'll be able to run at around 10 pence per mile until oil goes up again, when I may have to pay 13 to 14, still a lot cheaper than diesel, or petrol.

Not really sure what people have against it, apart from misconceptions, but hey ho, horses for courses and all that. Personally I've run some incredible cars on it, for example Supercharged Range Rover, loved it, 400 bhp, every luxury, wonderful driving position, and equivalent to 30 mpg.

Was told it would kill my engine, never had a problem, spoke to other owners who'd done up to 200k on LPG (with the Supercharged RR, they hadn't had any problems either). Oh, and no performance loss (at least none apparent).

 

[shanra]

Prices will remain steady and may even drop a little. Outlook good till summer.

 

[thebig1]

Why are prices creeping back up even the cost of oil hasnt changed. Local to me its gone from £1.02 up to £1.08.

 

[Gollom]

I'd rather sh!t in my boot than convert my car to lpg

That your car boot or your foot boot? In which case you would be in the sh1t (see what I did there......)

 

[W4E300]

Why are prices creeping back up even the cost of oil hasnt changed. Local to me its gone from £1.02 up to £1.08.

A pal of mine in Florida was just complaining that their gas prices have just gone up by 15cents to a dizzying $2.20..... That's about 30p a litre.

Sent from my iPad using MBClub UK

 

[stevehg]

A pal of mine in Florida was just complaining that their gas prices have just gone up by 15cents to a dizzying $2.20..... That's about 30p a litre.

~37p as a USA gallon is only ~4 litres. Still very cheap compared to here

I'm pretty sure that we'll see Oil rebound very strongly before too long. I think the Saudi's are doing the USA a favour, whilst at the same time killing off the competition with low oil prices killing investment in oil extraction across the world.

Once they decide to change course, I can see oil shooting up to new highs. I can't imagine the Saudi's will allow the low prices to continue for more than a few months, in any event.

The rising price of oil made US shale extraction viable. US now buys and exports more 'homegrown' oil as a result. Gulf states produce at the same level, so oversupply occurs and oil price goes down. Gulf states surprise the city by not throttling back supply, so oil price tumbles.

Gulf states are aware that this low price no longer makes US shale extraction viable, so they will hold out long enough for oil companies to moth ball more expensive production sites. Supply goes down, price goes up. Gulf states will wait as long as needed for this to occur.

Price then keeps going up until it reaches the level that shale extraction is viable again, so production starts, supply goes up, price goes down. Difference is this time that it will probably cycle around +/- 20% of shale extraction viability price.

This is the only difference in the usual supply & demand factors affecting price of crude. So enjoy the Gulf state & US stand off as long as it lasts.

 

[redjules51]

Why are prices creeping back up even the cost of oil hasnt changed. Local to me its gone from £1.02 up to £1.08.

Because we allow them to get away with it, myself included.

 

[Bellow]

Gulf states are aware that this low price no longer makes US shale extraction viable, so they will hold out long enough for oil companies to moth ball more expensive production sites. Supply goes down, price goes up. Gulf states will wait as long as needed for this to occur.

I heard that Saudi is prepared to see the barrel price drop to $20.

Price then keeps going up until it reaches the level that shale extraction is viable again, so production starts, supply goes up, price goes down. Difference is this time that it will probably cycle around +/- 20% of shale extraction viability price.

Overly optimistic I suspect. Less a case mothballing, more one of squeezing the fracking investors into bankruptcy. They wont rush back.

Meanwhile the bulk of the UK enjoys cheaper fuel (and the shires are spared the horrors of fracking) while the NE of Scotland is going to get hammered when the job losses really kick in and the government who think they understand Scotland sit back and do nothing to reverse the swingeing tax they levied. We all know NS oil costs $100/barrel to produce but yet there's no urgency to review the tax before March.

 

[KillerHERTZ]

Gone up 2p in Cambridge now £1.09 a Litre, thought we would see it below a pound

 

[automaniaman]

Working in said industry, the lower the price is for a barrel of oil, means my contracting rate & or position is affected...So from a personal point of view, to sooner it rises the better.

 

[thebig1]

So as it looks, everyone is being "Done over" by the oil companies etc, oil price goes up, fuel price goes up. Oil prices go down, fuel stays as is for months. Only goes down when enough publisity. Then oil stays down and fuel price creeps up. Not many other iderstries would get away with this behavior!

 

[Dryce]

Overly optimistic I suspect. Less a case mothballing, more one of squeezing the fracking investors into bankruptcy. They wont rush back.

But in a sense it also means that an upper threshold on sustained prices now exists.

It also means the speculative commodity traders won't be as likely to rush in and chase an upward price hike and distort the market.

We all know NS oil costs $100/barrel to produce but yet there's no urgency to review the tax before March.

That number cannot be true. The oil industry will say what it thinks is needed to be said in order to extort concessions from HMG.

But a number like $100 / barrel "to produce" makes North Sea oil unsustainable and means they must have been making a loss in the 80s, 90s, and most of the 2000's.

The issue I suspect is that the North Sea had hit a sweet spot with older capital infrastructure having amortised itself. The real problem is that new investment for new supplies no makes those production disproprtionately expensive - and conversely as the old capital infrastructure becomes older and non-productive they incur a huge decommissioning cost.

So if I'm wrong and it's *really* $100/barrel "to produce" then the only option is to mothball it right now and as quickly as possible.

 

[Dryce]

Not many other iderstries would get away with this behavior!

Hmmmmmmm.

For some reason airlines come to mind.