Oil prices

#1
If a thread has already been posted I apologise; However, having just read the BBC and Sky news websites, I see that oil is at its lowest price, (per barrell), for three years.

If that is the case, what were we paying for petrol, at the pumps, three years ago?

I'm sure it wasn't what we are paying now!!!!!

Can we expect further price drops? I think not. :? :evil:
 
#5
skintboymike said:
The oil has dropped but the tax hasn't. I don't expect diesel to go below the £1 barrier again; in fact, having read the link below, I wouldn't be surprised to see another surge in the not too distant future...

http://news.bbc.co.uk/1/hi/business/7687944.stm
I'm sorry I disagree, oil is one third the price it was just a few months ago, even with the tax increase, Derv should be back to around 80-90p a litre by now or even lower, the exchange rate hasn't helped as the Dollar rises against Sterling, but even with this taken into account we should still see a 15-20p reduction, unless someone is profiteering?
 
T

trowel

Guest
#6
heard_it_all_before said:
I was in Halfords the other day, and Castrol Magnatec was down to £26.99 for 4 litres, if that's an indicator...?

And you got a 1 litre bottle free.

:D :D :D
Halford's are well overpriced at the best of times, I don't go anywhere them.
 
#7
WhiteHorse said:
skintboymike said:
The oil has dropped but the tax hasn't. I don't expect diesel to go below the £1 barrier again; in fact, having read the link below, I wouldn't be surprised to see another surge in the not too distant future...

http://news.bbc.co.uk/1/hi/business/7687944.stm
I'm sorry I disagree, oil is one third the price it was just a few months ago, even with the tax increase, Derv should be back to around 80-90p a litre by now or even lower, the exchange rate hasn't helped as the Dollar rises against Sterling, but even with this taken into account we should still see a 15-20p reduction, unless someone is profiteering?
My point isn't that we SHOULDN'T have a reduction in costs, just that we won't because of, as you point out, people making a dirty profit.
 
#8
1.The oil price normally quoted is for oil that will be delivered in 3 months, so the price at the pump should be based on what the price of crude was 3 months ago.

2.The oil price is quoted in dollars, we pay in pounds, the pound has fallen against the dollar. To make a reasonable comparison you have to calculate the price of crude in pounds, using the exchange rates at the different times.
 
#9
trowel said:
heard_it_all_before said:
I was in Halfords the other day, and Castrol Magnatec was down to £26.99 for 4 litres, if that's an indicator...?

And you got a 1 litre bottle free.

:D :D :D
Halford's are well overpriced at the best of times, I don't go anywhere them.
I know what you mean bubby, but with the 1 litre bottle being free, the 5 litres that I needed for my Gas Guzzlers annual service was cheaper than anywhere else, the local motor factors was much dearer.

Can't wait for the VED to reach £455 per year, that'll mean that I have more rights to be on the road than some Lentil-soup eater in there C1
:D :D :D :D :D
 
#10
Mobat said:
1.The oil price normally quoted is for oil that will be delivered in 3 months, so the price at the pump should be based on what the price of crude was 3 months ago.

2.The oil price is quoted in dollars, we pay in pounds, the pound has fallen against the dollar. To make a reasonable comparison you have to calculate the price of crude in pounds, using the exchange rates at the different times.
Have a butchers at this and then do the sums.
http://www.petrolprices.com/fuel-tax.html
 
#11
WhiteHorse said:
skintboymike said:
The oil has dropped but the tax hasn't. I don't expect diesel to go below the £1 barrier again; in fact, having read the link below, I wouldn't be surprised to see another surge in the not too distant future...

http://news.bbc.co.uk/1/hi/business/7687944.stm
I'm sorry I disagree, oil is one third the price it was just a few months ago, even with the tax increase, Derv should be back to around 80-90p a litre by now or even lower, the exchange rate hasn't helped as the Dollar rises against Sterling, but even with this taken into account we should still see a 15-20p reduction, unless someone is profiteering?
Assuming £1 / litre pump price, 65p is tax for HMG and 35p to the seller. How much of that 35p goes towards transporting the oil around the world, refining it, marketing it, transporting to the forecourt and paying all the staff etc etc? Say 8p - including profit margin. That means the raw commodity makes up 27p of the pump price at £1/litre.

90p/litre forecourt equates to about $60 a barrel.
£1/litre forecourt equates to about $90 a barrel.

Pump prices likely to rise as Saudis need about $65 a barrel to pay for their spending plans. Expect Saudis to announce major cut in production to push the price up again to this level.
 
#12
The Government have no interest in the price of fuel at the pump going down.

You will see them starting to shout at the oil company's just as the price starts to shoot up again.
 
#14
whitecity said:
WhiteHorse said:
skintboymike said:
The oil has dropped but the tax hasn't. I don't expect diesel to go below the £1 barrier again; in fact, having read the link below, I wouldn't be surprised to see another surge in the not too distant future...

http://news.bbc.co.uk/1/hi/business/7687944.stm
I'm sorry I disagree, oil is one third the price it was just a few months ago, even with the tax increase, Derv should be back to around 80-90p a litre by now or even lower, the exchange rate hasn't helped as the Dollar rises against Sterling, but even with this taken into account we should still see a 15-20p reduction, unless someone is profiteering?
Assuming £1 / litre pump price, 65p is tax for HMG and 35p to the seller. How much of that 35p goes towards transporting the oil around the world, refining it, marketing it, transporting to the forecourt and paying all the staff etc etc? Say 8p - including profit margin. That means the raw commodity makes up 27p of the pump price at £1/litre.

90p/litre forecourt equates to about $60 a barrel.
£1/litre forecourt equates to about $90 a barrel.


Pump prices likely to rise as Saudis need about $65 a barrel to pay for their spending plans. Expect Saudis to announce major cut in production to push the price up again to this level.
Crude has dropped to $49 a barrel, or £34 for around 159 litres, thats 21p per litre. I know we don;t get 159 litres of petrol or derv, but it produces much more than fuel.
 
#15
WhiteHorse said:
whitecity said:
WhiteHorse said:
skintboymike said:
The oil has dropped but the tax hasn't. I don't expect diesel to go below the £1 barrier again; in fact, having read the link below, I wouldn't be surprised to see another surge in the not too distant future...

http://news.bbc.co.uk/1/hi/business/7687944.stm
I'm sorry I disagree, oil is one third the price it was just a few months ago, even with the tax increase, Derv should be back to around 80-90p a litre by now or even lower, the exchange rate hasn't helped as the Dollar rises against Sterling, but even with this taken into account we should still see a 15-20p reduction, unless someone is profiteering?
Assuming £1 / litre pump price, 65p is tax for HMG and 35p to the seller. How much of that 35p goes towards transporting the oil around the world, refining it, marketing it, transporting to the forecourt and paying all the staff etc etc? Say 8p - including profit margin. That means the raw commodity makes up 27p of the pump price at £1/litre.

90p/litre forecourt equates to about $60 a barrel.
£1/litre forecourt equates to about $90 a barrel.


Pump prices likely to rise as Saudis need about $65 a barrel to pay for their spending plans. Expect Saudis to announce major cut in production to push the price up again to this level.
Crude has dropped to $49 a barrel, or £34 for around 159 litres, thats 21p per litre. I know we don;t get 159 litres of petrol or derv, but it produces much more than fuel.
Eh???

What point are you trying to make? It's not clear.

How does writing that at $49 per barrel, a litre of crude equates to 21p (at today's exchange rate), help the discussion?

I thought we were discussing the price of refined petrol at the pump - a price that reflects a crude spot price several weeks past.
 
#16
According to Sky News, several supermarkets in the UK have 'slashed' petrol prices to under 90p per litre...

Does this mean the sudden rise in public transport prices will level out?
 
#17
I used to work in the head office of an oil major. One of our research projects was to try and work out the relationship between market barrel price and the forecourt price. At that time it was impossible to establish any sort of formula, mostly due to the fact that oil takes about three to four months from sale at the pipeline to sale at the forecourt, and during that time there are so many variable external influences at work - not least moving tax rates and other Government interventions. Hence if the oil company cannot determine a pricing relationship, it can hardly be "fixing" the system in order to profiteer. When the PM or other politician attacks "profiteering" they are being deliberately disingenuous - i.e. lying to obfuscate the reality of the high tax take, knowing that a misinformed public will blame the oil companies.

At that time, the company I worked for made no profit at all from "downstream" operations (refining to forecourt sales), and petrol stations were surviving on profits from their shops and carwashes. Most branded petrol stations are, of course, either privately owned or operated under a franchise scheme - so the forecourt fuel price is not necessarily set by the oil company.

Lets also not forget that the oil company profit has to cover that vast industrial and logistic chain, whilst the Government take(s) is simply cash into the till to squander on the great socialist plan....
 
#18
whitecity said:
WhiteHorse said:
whitecity said:
WhiteHorse said:
skintboymike said:
The oil has dropped but the tax hasn't. I don't expect diesel to go below the £1 barrier again; in fact, having read the link below, I wouldn't be surprised to see another surge in the not too distant future...

http://news.bbc.co.uk/1/hi/business/7687944.stm
I'm sorry I disagree, oil is one third the price it was just a few months ago, even with the tax increase, Derv should be back to around 80-90p a litre by now or even lower, the exchange rate hasn't helped as the Dollar rises against Sterling, but even with this taken into account we should still see a 15-20p reduction, unless someone is profiteering?
Assuming £1 / litre pump price, 65p is tax for HMG and 35p to the seller. How much of that 35p goes towards transporting the oil around the world, refining it, marketing it, transporting to the forecourt and paying all the staff etc etc? Say 8p - including profit margin. That means the raw commodity makes up 27p of the pump price at £1/litre.

90p/litre forecourt equates to about $60 a barrel.
£1/litre forecourt equates to about $90 a barrel.


Pump prices likely to rise as Saudis need about $65 a barrel to pay for their spending plans. Expect Saudis to announce major cut in production to push the price up again to this level.
Crude has dropped to $49 a barrel, or £34 for around 159 litres, thats 21p per litre. I know we don;t get 159 litres of petrol or derv, but it produces much more than fuel.
Eh???

What point are you trying to make? It's not clear.

How does writing that at $49 per barrel, a litre of crude equates to 21p (at today's exchange rate), help the discussion?

I thought we were discussing the price of refined petrol at the pump - a price that reflects a crude spot price several weeks past.
I was refering to your quote, that $60 a barrel was 90p a litre, so if its $49 then it should be cheaper still. The 21p a litre was to reinforce what the base price before refining, transport and taxation is.

Another point though is why Gas and Electric prices have failed to fall?
 
#19
Price elasticity ladies and gents. They will use relative demand to see how much people are prepared to pay. They use their cartels; OPEC etc to regulate the supply and screw us all over. All going a bit pete tong now though.

Why do you think the US is so concerned with replacing oil as the main source of energy. To save the environment? To combat global warming? Nah - it's purely strategic. As soon as oil loses its relative value, there will be no need to give a stuff about Iran, Iraq, Saudi Arabia, Russia etc etc. The global leader in renewable anergy will no longer need to worry about stuff like that.
 

the_boy_syrup

LE
Book Reviewer
#20
Nailjuice said:
According to Sky News, several supermarkets in the UK have 'slashed' petrol prices to under 90p per litre...

Does this mean the sudden rise in public transport prices will level out?
89ppl in York
Bus and taxi's will claim Derv is still high so no drop in prices just yet
 

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