Global oil price.
Discussion
The current invasion and effects of the sanctions on energy prices got me wondering - why is there a global oil price at all?
If North Sea oil can be sold into the UK market for us to use (or sell on) why not allow local producers to set a local price?
It's not like there is a global price for other stuff - cars, glass, paint, fabrics....
If North Sea oil can be sold into the UK market for us to use (or sell on) why not allow local producers to set a local price?
It's not like there is a global price for other stuff - cars, glass, paint, fabrics....
I was thinking on this earlier, prompted by the observation on the news this morning that cutting oil and gas from Russia actually benefits them because the price goes up so they need to sell less to make the same amount of money. Would it not be more effective a sanction to drive the price down?
Electro1980 said:
So the answer is, we sold off all our oil rights to private companies and we are competing against state owned OPEC businesses? That explains a lot, but is not talked about.
Look at who runs a lot of those OPEC states and you'll spot exactly why they can dictate their local prices...What I don't understand is why the government don't step in to stop this pathetic escalation in prices, oh wait, they get about 70% tax on every effing litre we use, that'll pay a few bills, and a lot of politicians are probably on boards for fuel and utility suppliers hence why that all went through too.
I know there are reasons for all of this happening and happening now, but with the potential end of restrictions, it seems awfully convenient to utterly rape the nation with hugely increased costs on things they can NOT EVEN TRY to budget for easily.
And the affect on consumer confidence will be perhaps the biggest we have seen for decades I think, people just will not GO anywhere, and who can blame them until they can work out budgets or sort out ways to pay all this extra in fuel and utilities.
It is a scandal that is just being allowed to happen to a nation already crippled by Covid, the timing is far too obvious to me. It almost seems to me that the powers that be are trying it on, let's see how far we can push them, and it will only get worse,
]. Slaves is what we are in a few ways.
I know there are reasons for all of this happening and happening now, but with the potential end of restrictions, it seems awfully convenient to utterly rape the nation with hugely increased costs on things they can NOT EVEN TRY to budget for easily.
And the affect on consumer confidence will be perhaps the biggest we have seen for decades I think, people just will not GO anywhere, and who can blame them until they can work out budgets or sort out ways to pay all this extra in fuel and utilities.
It is a scandal that is just being allowed to happen to a nation already crippled by Covid, the timing is far too obvious to me. It almost seems to me that the powers that be are trying it on, let's see how far we can push them, and it will only get worse,
]. Slaves is what we are in a few ways.
Electro1980 said:
So the answer is, we sold off all our oil rights to private companies and we are competing against state owned OPEC businesses? That explains a lot, but is not talked about.
No.The global prices quoted on the news etc are of a financial instrument, a contract for a certain grade of oil delivered on a certain date.
There is plenty of local pricing, and consumer prices can be regulated, taxed or subsidised. Though obviously that comes at a cost somewhere.
LukeBrown66 said:
What I don't understand is why the government don't step in to stop this pathetic escalation in prices, oh wait, they get about 70% tax on every effing litre we use, that'll pay a few bills, and a lot of politicians are probably on boards for fuel and utility suppliers hence why that all went through too.
I know there are reasons for all of this happening and happening now, but with the potential end of restrictions, it seems awfully convenient to utterly rape the nation with hugely increased costs on things they can NOT EVEN TRY to budget for easily.
And the affect on consumer confidence will be perhaps the biggest we have seen for decades I think, people just will not GO anywhere, and who can blame them until they can work out budgets or sort out ways to pay all this extra in fuel and utilities.
It is a scandal that is just being allowed to happen to a nation already crippled by Covid, the timing is far too obvious to me. It almost seems to me that the powers that be are trying it on, let's see how far we can push them, and it will only get worse,
]. Slaves is what we are in a few ways.
Gotta pay for the country's 2 year holiday somehowI know there are reasons for all of this happening and happening now, but with the potential end of restrictions, it seems awfully convenient to utterly rape the nation with hugely increased costs on things they can NOT EVEN TRY to budget for easily.
And the affect on consumer confidence will be perhaps the biggest we have seen for decades I think, people just will not GO anywhere, and who can blame them until they can work out budgets or sort out ways to pay all this extra in fuel and utilities.
It is a scandal that is just being allowed to happen to a nation already crippled by Covid, the timing is far too obvious to me. It almost seems to me that the powers that be are trying it on, let's see how far we can push them, and it will only get worse,
]. Slaves is what we are in a few ways.
LukeBrown66 said:
What I don't understand is why the government don't step in to stop this pathetic escalation in prices, oh wait, they get about 70% tax on every effing litre we use, that'll pay a few bills, and a lot of politicians are probably on boards for fuel and utility suppliers hence why that all went through too.
I know there are reasons for all of this happening and happening now, but with the potential end of restrictions, it seems awfully convenient to utterly rape the nation with hugely increased costs on things they can NOT EVEN TRY to budget for easily.
And the affect on consumer confidence will be perhaps the biggest we have seen for decades I think, people just will not GO anywhere, and who can blame them until they can work out budgets or sort out ways to pay all this extra in fuel and utilities.
It is a scandal that is just being allowed to happen to a nation already crippled by Covid, the timing is far too obvious to me. It almost seems to me that the powers that be are trying it on, let's see how far we can push them, and it will only get worse,
]. Slaves is what we are in a few ways.
NI rise incoming !!! Their only action is inaction.I know there are reasons for all of this happening and happening now, but with the potential end of restrictions, it seems awfully convenient to utterly rape the nation with hugely increased costs on things they can NOT EVEN TRY to budget for easily.
And the affect on consumer confidence will be perhaps the biggest we have seen for decades I think, people just will not GO anywhere, and who can blame them until they can work out budgets or sort out ways to pay all this extra in fuel and utilities.
It is a scandal that is just being allowed to happen to a nation already crippled by Covid, the timing is far too obvious to me. It almost seems to me that the powers that be are trying it on, let's see how far we can push them, and it will only get worse,
]. Slaves is what we are in a few ways.
Electro1980 said:
It is something I have never understood. Various OPEC nations seem to be able to use their own oil at whatever price they want but we can’t. Although, I’m not sure if our oil is usable for petrol.
I believe that Brent crude is too "good" for petrol - however this is something I recall from school so I might be completely wrong as it's a long time ago.Fossilthe4x4 said:
The current invasion and effects of the sanctions on energy prices got me wondering - why is there a global oil price at all?
If North Sea oil can be sold into the UK market for us to use (or sell on) why not allow local producers to set a local price?
It's not like there is a global price for other stuff - cars, glass, paint, fabrics....
There is a global price for plenty of other stuff.If North Sea oil can be sold into the UK market for us to use (or sell on) why not allow local producers to set a local price?
It's not like there is a global price for other stuff - cars, glass, paint, fabrics....
But essentially, the answer here is that the law doesn’t force producers to sell only into the UK market, nor does the law mandate local price ceilings (or mandate that government pay the difference between the commodity price and the local ceiling)
The law could of course be changed, if parliament put in the appropriate paperwork (though that would not be, to my mind, a good idea).
Local producers would not voluntarily set a local price that is lower than the global price. That would straightforwardly be a daft way to run a business.
Edited by Jawls on Thursday 10th March 09:07
Dog Star said:
Electro1980 said:
It is something I have never understood. Various OPEC nations seem to be able to use their own oil at whatever price they want but we can’t. Although, I’m not sure if our oil is usable for petrol.
I believe that Brent crude is too "good" for petrol - however this is something I recall from school so I might be completely wrong as it's a long time ago.LukeBrown66 said:
What I don't understand is why the government don't step in to stop this pathetic escalation in prices, oh wait, they get about 70% tax on every effing litre we use
Interesting graph herehttps://www.racfoundation.org/data/taxation-as-per...
Tax is currently 52% of the price, lowest it's been for at least 10 years. It peaked at over 70% in 2016.
Ireland has just announced a 5 month cut in excise duty, the equivalent of 17p for petrol and 13p for diesel.
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