Shhhh, oil prices are falling, shhhhh

[Gucci]

http://www.oil-price.net/

hmmmm, I wonder why the media aren't ramming this down our throat? Perhaps the energy companies are a bit miffed at proposed fuel hikes, or that good news is not what we want to hear?

Why doesn't the Daily Express kick off with "GREAT NEWS, OIL PRICE SLIPS HELPING INFLATION TOO"!

 

[V8mate]

Because gas and electricity price rises are the new news

 

[Dryce]

hmmmm, I wonder why the media aren't ramming this down our throat?

Because a dip to a hundred and twenty whatever dollars isn't really good news.

The checks and balances in the market mean that there has been a fall in consumption. However there has also been a drop in inventories and if those involved in strategic purchasing of stocks think this price is as low as it will get for a while then they will start buying. So the price may go up as a result of it coming down (sounds mad!).

And as regards domestic gas supplies in the UK then that's a whole other can of strategic worms.

Some of the fallout from the increases have yet to work their way through the systems.

Figure for example that the airlines are stripping their winter schedules as we speak.

Some of the impacts on shipping of finished goods across the globe are yet to come home to roost in the retail markets here.

 

[Gucci]

Agreed, the drop is not enought for people to suddenly reap rewards etc, however it does contradict the doom merchants who sid it will only rise. Just trying to add a touch of balance to the very one sided media coverage. Economy is pony, but it certainly doesn't help consumer confidence (and market confidence) if everyone says we're doooooooooooooooomed

 

[Dragon]

While oil prices are falling, EDF intends to charge us more for gas and electricity.

What a rip-off?

 

[st4]

There is only one way oil prices will go in the long term, and it ain't down (unless something in the economy really changes).

 

[Dieselman]

Maybe we should expect a headline in the Daily Mail saying that the Government should increase tax to compensate for lost revenue from the falling price of oil..

Time to have a good whinge on here about the reduced tax, hey.

 

[Gucci]

Good man!

 

[Dieselman]

There is only one way oil prices will go in the long term, and it ain't down (unless something in the economy really changes).

Or people decide to use less of it. It's a simple case of supply and demand.

 

[Dryce]

Maybe we should expect a headline in the Daily Mail saying that the Government should increase tax to compensate for lost revenue from the falling price of oil.

Slight side comment. While HMG should see extra reveneue from oil production it is probably seeing a reduction in revenue from fuel sales.

If petrol/diesel sales fall by a few % then that more than obliterates any increase in net VAT revenue from petrol/diesel. So HMG actually loses out.

(There was a figure published from one of the credit card companies that they were seeing something like 7% drop in turnover from filling stations in US.)

 

[flango]

There is only one way oil prices will go in the long term, and it ain't down (unless something in the economy really changes).

Might not be the case the president of Venezuela is predicting that this is just a world oil bubble and prices will be at $70 USD by March 2009, this guy has an excellent track record on forecasting couple this with the Americans now talking to the Iranians over the Iranian Oil Bourse which is the only Oil Bourse in the world not to sell in USD (they sell in Euros) then he could well be right. All the producers are ramping up production and if they ever get Nigeria stablised then we will be back on track, current high prices are just driven by analysts talking it up and bear no relation to market conditions of supply and demand.

On a seperate rant the petrol stations are quick enough to pass on the rises to us Immediately so why should it take so long the other way when prices decrease, because we are in rip off Britain thats why,

 

[st4]

Or people decide to use less of it. It's a simple case of supply and demand.

Given the way the East is developing I see this as highly unlikely, i.e. demand falling when energy demand will only increase in the next 30 years.

BUT if this recession/credit crunch really starts to bite and we see a real economic regression then yes, demand will fall, prices will fall at the pump.

 

[nullogik]

With oil prices falling, perhaps Gordon & Co. will be thinking about implementing that 2p tax rise a bit sooner than they had planned...

 

[Dieselman]

Boom, boom...Click 3.

 

[st4]

With oil prices falling, perhaps Gordon & Co. will be thinking about implementing that 2p tax rise a bit sooner than they had planned...

They better not. A real vote winner that one.

 

[barryj]

I tell you what would be nice:

Example figures:

Petrol £1.00 per liter, the Vat on that would be 14.89p

Petrol £1.20 per liter, the Vat on that 17.87p

So the rising price of fuel is benefiting the Exchequer in increased VAT revenue, unless I am missing somthing.

Therefore the Exchequer would be in a standstill situation if it flexed VAT on fuel to allow for the increase in price. This is somthing that is actually worth lobbying for and has no real sustainable argument that I can see to not follow through on.

 

[andy_k]

they will argue that the tax they are gaining on increased fuel prices is offset against taxes they are losing elsewhere due to slowdown in the economy

Stamp duty for example, VAT on other luxury purchases as people change their spending habits.

 

[Stratman]

Might not be the case the president of Venezuela is predicting that this is just a world oil bubble and prices will be at $70 USD by March 2009]

Ooh, I do hope so. I can't wait to see all the city "Futures speculators" (gamblers to the rest of us) reduced to looking in bins for food. They are directly responsible for a large part of the recent increases.

And if anyone on this forum is one of those lowlifes then shame on you. Get used to Lada dealerships.

 

[Dieselman]

And if anyone on this forum is one of those lowlifes then shame on you. Get used to Lada dealerships.

There aren't any.. Are Kia any good.?

 

[barryj]

they will argue that the tax they are gaining on increased fuel prices is offset against taxes they are losing elsewhere due to slowdown in the economy

Stamp duty for example, VAT on other luxury purchases as people change their spending habits.

Given that logic they would have to increase the VAT on fuel when the prices reduce.