Oil Price drops again

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

BrilloPad replied

15 September 2008, 09:56
Originally posted by JoJoGabor View Post

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.
Leave a comment:
JoJoGabor replied

15 September 2008, 09:52
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.
Leave a comment:
ChimpMaster replied

15 September 2008, 09:27
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*.
Leave a comment:
HairyArsedBloke replied

15 September 2008, 09:26
Originally posted by BrilloPad View Post

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.
Leave a comment:
BrilloPad replied

15 September 2008, 09:21
Originally posted by HairyArsedBloke View Post

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?
Leave a comment:
HairyArsedBloke replied

15 September 2008, 09:08
Originally posted by BrilloPad View Post

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.
Leave a comment:
BrilloPad replied

15 September 2008, 09:01
Originally posted by Paddy View Post

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.
Leave a comment:
Paddy started a topic Oil Price drops again

15 September 2008, 08:59
Oil Price drops again

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?
Tags: None