Oil Price drops again

[Paddy]

Crude oil price February 2008 98 USD per barrel
The Price of Diesel in February 2008 was £1.10 per litre.
Crude oil price today is 95 to 98 USD per barrel and falling.
The Price of cheapest Diesel today £1.24 per litre.

If crude oil is priced through supply and demand what was the sudden demand that created 40% increase and then slumped back?

[BrilloPad]

Crude oil price February 2008 98 USD per barrel
The Price of Diesel in February 2008 was £1.10 per litre.
Crude oil price today is 95 to 98 USD per barrel and falling.
The Price of cheapest Diesel today £1.24 per litre.

If crude oil is priced through supply and demand what was the sudden demand that created 40% increase and then slumped back?

Does it take a few weeks to feed through to the pumps? Is there increased tax?

Article I read yesterday suggested falling oil price is bad as :-
1. manufacturing output dropping off
2. it will not encourage more exploration.

[HairyArsedBloke]

Article I read yesterday suggested falling oil price is bad as :-
1. manufacturing output dropping off
2. it will not encourage more exploration.

I can see point 2, but I'm lost on point 1.

[BrilloPad]

I can see point 2, but I'm lost on point 1.

I **think** they are saying that less manufacturing going on now - hence less demand and oil price goes down. But of ccourse now oil price goes down there will be more manufacturing - boomed surely?

[HairyArsedBloke]

I **think** they are saying that less manufacturing going on now - hence less demand and oil price goes down. But of ccourse now oil price goes down there will be more manufacturing - boomed surely?

Exactly, your original post suggested that the article you read had the causal reationship the other way round.

[ChimpMaster]

I just want to know when the energy companies are going to cut their prices by 25% now that Oil has dropped back.

I'm sure they must be planning it *right now*.

[JoJoGabor]

Remember that the oil price is a future price, meaning they agree to pay a certain price 30 in 30 days time for delivery.

It will also take time to refine the oil into petrol and deliver it to the pump so it is delayed somewhat.

I'm sure there's a chart online somehwere which should show if the petrol price correlates with the delayed oil price. I still think the petrol companies are slower to reduce the price though.

[BrilloPad]

Remember that the oil price is a future price, meaning they agree to pay a certain price 30 in 30 days time for delivery.

It will also take time to refine the oil into petrol and deliver it to the pump so it is delayed somewhat.

I'm sure there's a chart online somehwere which should show if the petrol price correlates with the delayed oil price. I still think the petrol companies are slower to reduce the price though.

Indeed. Although there is supermarket competition there are too few garages around. I think less than 10,000 - 40,000 30 years ago - with some closing every week?

Round our way (SE LOndon) alot replaced with flats. BP have sold at least 3 within a 2 mile radius of me.