oil sub 3 figures at $99 /barrel
Discussion
Crazy low? Not so sure. Depends in what context. Lower than we are used to perhaps, but still high historically. It only broke this price for the first time in 2008 and that was after a meteoric rise over the preceding 4 years (it more than tripled in price 2004 - 2008). This downward correction is long overdue according to most pundits. Lot of oil out there at the moment. Of course, all depends on what happens next in the Middle East.
The Middle East is looking far to stable for comfort, Iran and Iraq haven't kicked off for ages, even Israel is relatively quiet. USA is now energy independant due to shale gas and shale oil so demand for Saudi oil is less. It's bad news for the Scots as developing new fields is less attractive. But hey are really happy that they didn't get independance as Salmond's budget figures were based on oil >$120 per barrel leaving big hole in their tax take. Those in Aberdeen like a high petrol price as it keeps them in work.
mrdemon said:
not that interesting but oil now $70 and petrol today was £1.17 but I see some place are as low as £1.15 a L now
big drops ie a tenner saving a fill up over a few months back.
The bigger picture is interesting tho - low crude prices put a squeeze on Russia and the suckers that have heavily invested in shale. How both of those unfold will be interesting to watch...big drops ie a tenner saving a fill up over a few months back.
smudger911 said:
The bigger picture is interesting tho - low crude prices put a squeeze on Russia and the suckers that have heavily invested in shale. How both of those unfold will be interesting to watch...
Russia reporting negative projected growth figures says quite a bit about it! Although it doesn't paint the whole picture.
supersport said:
Didn't just announce a freeze on fuel duty yesterday?
Funny how the oil prices has dropped 30% yet the pump price doesn't follow suit, should really be about 109p by now. You can bet the day crude goes back up the pump price will follow.
Aye but at 100 bucks a barrel and £1.35 a litre, the oil cost only makes up around 45p of the pump price. So drop to 50 bucks and it only falls 23p (plus pro rata tax drop too). Funny how the oil prices has dropped 30% yet the pump price doesn't follow suit, should really be about 109p by now. You can bet the day crude goes back up the pump price will follow.
mrdemon said:
$62 a barrel now and £1.12 at the pumps, so still nice drops
When it becomes 99p per litre or lower, then I will feel that the cost at the pump is actually acceptable (Not that I can do anything about it). The last time petrol was an acceptable price to me, it was 72P per litre ............... I think that was way back 2002/3.
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