Oil Prices Crack New Records.

[hawk20]

Crude oil prices have broken through 107 US dollars a barrel to set another record in New York.

Oil prices have hit record highs in 5 of the last 6 trading sessions.

Last week OPEC (the cartel of oil producers) decided not to raise output despite high prices. In addition investors are buying oil as a hedge against the weakening dollar

Motorists in the UK have seen the average price of petrol across the UK reach 105.7p, with diesel at 111.6p.

Chancellor Alistair Darling is under pressure to postpone a planned 2p rise in fuel duty when he delivers the Budget on Wednesday March 12th.

Best not to hold your breath.

 

[ibrar]

I hate fuel price increases. I found out today that to fill my tank costs me a few bob more than it did a few months ago, by checking against receipts. Not so goood

 

[hawk20]

I hate fuel price increases. I found out today that to fill my tank costs me a few bob more than it did a few months ago, by checking against receipts. Not so goood

Me too. I don't know what you pay, but round here diesel is now about 111.9p per litre. A year ago it was 91.9p

 

[pammy]

I hate fuel price increases. I found out today that to fill my tank costs me a few bob more than it did a few months ago, by checking against receipts. Not so goood

I can tell at the pump the increase has been so marked over the past four weeks.

 

[hawk20]

Well we learn tommorrow whether or not the Chancellor will add 2p per litre from April -or will postpone till September or even cancel?

 

[Rory]

What I find amazing is that some forecasters are talking about oil going back down to $50.

I don't know, but why on earth would that happen? With soaring demand from China and elsewhere, if you had an oil field then you'd surely be pretty happy selling half the amount for twice the price!!

 

[verytalldave]

Its now a good idea to actually LOOK at individual petrol station prices.
Station prices vary in my area by as much as 6p a litre and when you are putting in 50 litres ++, then it does make shopping around worthwhile. I didnt use to bother, but I do now.

 

[hawk20]

Yes. This is a useful site. I use it regularly now. Can save quite a lot.
http://www.petrolprices.com/

 

[hawk20]

What I find amazing is that some forecasters are talking about oil going back down to $50.

I don't know, but why on earth would that happen? With soaring demand from China and elsewhere, if you had an oil field then you'd surely be pretty happy selling half the amount for twice the price!!

Yes. I find that hard to believe too. Others are saying could go to $150. Who knows.

The logic of those predicting lower prices is quite interesting. When the IRAQ war broke out (what 2003?) oil prices were around $25 dollars per barrel. OK demand has gone up due to China etc. But not that much. Nowhere near enough to cause prices to quadruple.

But speculators keep buying on fears of this, that, and t'other and forcing prices up. Once prices start falling -the logic goes- the speculators will gradually vanish.

Bit like house prices and buy to let punters.

 

[st4]

In these more turbulent economic times our chancellor should be cutting fuel duty to offset the oil price rise. He may face another haulliers strike/fuel protest like earlier on this decade.

Why does diesel cost more than petrol, its not in the "green" thinking of our silly government.

 

[jeremytaylor]

What I find amazing is that some forecasters are talking about oil going back down to $50.

I find this highly unlikely too.

But even if it did, you just KNOW Gordon and his cronies would increase the tax to make up the price drop.

 

[hawk20]

Why does diesel cost more than petrol, its not in the "green" thinking of our silly government.

I wish I knew the answer to that. It is not the govt. The tax on low sulphur diesel that we all use is the same as on petrol.

So supply and demand. More demand for heating in winter. More demand from China. More demand from more and more of us choosing to buy diesel cars. The differential should drop in the summer.

 

[RoseTattoo]

Ah , have you heard of Peak Oil? Read this http://en.wikipedia.org/wiki/Peak_oil
It's all obvious stuff, it could reach $1000 quite soon or, it could stabilise. Personally I expect a gradual creeping up as car production in the East, especially China expands.
We buy lots of cheap goods here, which gives us money in our pocket so that we can afford higher oil prices, while they earn more money, expand car ownership, oil consumption shoots up, petrol prices go up but we keep buying cheap goods. Swings and roundabouts - basic rule of economics.
My advice - fix what can be fixed and don't worry about the rest, it's going to happen anyway. Have a pint or a decent glass of Bordeaux.

 

[carnut]

Oil prices go up...Oil is priced in $....$ to £ currency comes down. So the UK price should be (slightly) protected. That is apart from record Oil company profits and Govt Revenues that are positively linked to Rising oil prices!

Worth a thought as to why we are paying more without any Govt intervention or concern. Add to that so called "green" added taxes and where do you think we are going?
The Motorist is an easy target. In Economics terms the cost of Fuel Demand is Inelastic! ie we will pay whatever!

 

[Rory]

Why does diesel cost more than petrol, its not in the "green" thinking of our silly government.

Apparently "newly established standards for lower sulphur diesel require a more complex refining process".

(but it takes slightly less crude to make a litre of diesel than it does to make a litre of petrol)

 

[A210AMG]

Hello

I'm just glad I can walk to work, regulary beat the cars anyway

Also lucky as I can fill my car and the fuel lasts a few months sometimes.

Prices will probably go up April 1st. Lets be honest they are having a laugh!!

 

[beaRS]

We're all muggs!

Petrol prices will keep creeping up as long as we keep filling up. It's a supply and demand thing - the oil producers have the supply, and we all have the demand.

I often ask myself - what would the price of petrol have to rise to before I sell my car and get a job that within walking distance of my home. The answer is we're nowhere near that price yet.

The problem is that as long as people like me (and I suspect many others too) are happy to keep filling up - prices will keep going up.

It aint fair, but what can we do about it?

 

[hawk20]

Roll on the hydrogen car.

 

[hawk20]

Today, US crude oil reached $111 per barrel -yet another new record.

Simple supply and demand analysis fails to explain what is going on, as there are no supply problems at present and demand has actually fallen since oil was ‘only’ $75 per barrel.

What’s happening? Speculation is the most likely explanation. Scared by falls in the value of the dollar, lots of investors are in a ‘flight to commodities’ which pushed gold to over £1,000 dollars an ounce today.

US house prices are still falling and in some areas homeowners are just walking away from their homes because the money they owe is greater than the current value of their house.

Plenty of scope for more bad news to come, it seems.