Oil prices drop again to $118 a barrel
05 August 2008, 04:41 PM
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Oil prices drop again to $118 a barrel
Lets see if the petrol companies follow suit again ad continue to reduce the petrol prices to where they were 3 months ago in line with the oil price !!
BBC NEWS | Business | Oil price falls further to $118
Dave
BBC NEWS | Business | Oil price falls further to $118
Dave
05 August 2008, 05:20 PM
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Lets see if the petrol companies follow suit again ad continue to reduce the petrol prices to where they were 3 months ago in line with the oil price !!
BBC NEWS | Business | Oil price falls further to $118
Dave
BBC NEWS | Business | Oil price falls further to $118
Dave
05 August 2008, 05:24 PM
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Yeah will we ever seen the benefit?... by the time the garages are thinking they should start cutting prices more, oil will be on its way up again, so they won' cut the prices.
And as usual it'll be another record profit by the oil firm...
And as usual it'll be another record profit by the oil firm...
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06 August 2008, 03:42 PM
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According to the AA the price for unleaded at the end of april was 108.1 nationally with an oil price of $115. Now we're currently looking at 115.0 for a litre of unleaded with a current oil price of $119.
Its not that simple though as the oil that was used to make the unleaded which is on the forecourts right now was bought a few weeks ago, probably at about $125 so a more accurate comparison would be so say that todays average of 115.0 pence per litre comes from a $125 barrel of oil. Give it 2 weeks and we'll be seeing close to 110 pence which equates to todays $119 barrel.
Its important to remember that oil is not delivered immediately, prices do not go up immediately nor do they come down immediately, also the actual supermarkets and forecourts do not make massive profits (in percent terms) from petrol, they are actually very competitive with each other in driving prices down.
I fear we're also going to be hit with a devaluing of the pound, if it drops under 1.8 to the dollar (and I think 1.6-1.8 is possible in the next 18 months) then that will erode any drop in the price of oil as all oil is paid for in dollars.
Its not that simple though as the oil that was used to make the unleaded which is on the forecourts right now was bought a few weeks ago, probably at about $125 so a more accurate comparison would be so say that todays average of 115.0 pence per litre comes from a $125 barrel of oil. Give it 2 weeks and we'll be seeing close to 110 pence which equates to todays $119 barrel.
Its important to remember that oil is not delivered immediately, prices do not go up immediately nor do they come down immediately, also the actual supermarkets and forecourts do not make massive profits (in percent terms) from petrol, they are actually very competitive with each other in driving prices down.
I fear we're also going to be hit with a devaluing of the pound, if it drops under 1.8 to the dollar (and I think 1.6-1.8 is possible in the next 18 months) then that will erode any drop in the price of oil as all oil is paid for in dollars.
06 August 2008, 04:30 PM
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Used to be a time when the only Diesel vehicles you saw were vans and taxis. Now every other car you see is.
06 August 2008, 04:31 PM
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06 August 2008, 05:12 PM
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Dave
06 August 2008, 05:41 PM
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06 August 2008, 07:23 PM
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13 August 2008, 04:03 PM
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What this essentially means (because all oil is paid for in $'s) is that a barrel today costs £60.75, which would have bought a $120.89 barrel 2 weeks ago.
I personally think thats why we're stuffed in the UK - the pound has been very strong over the past few years - its now unwinding and with it pushing up import prices which is going to make our already high inflation much higher.
Don't expect much more of a reduction in fuel prices unless the pound finds some strength again.
13 August 2008, 04:23 PM
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Although oil went through $113 today, the £:$ exchange is at 1.86 today compared to 1.99 2 weeks ago.
What this essentially means (because all oil is paid for in $'s) is that a barrel today costs £60.75, which would have bought a $120.89 barrel 2 weeks ago.
I personally think thats why we're stuffed in the UK - the pound has been very strong over the past few years - its now unwinding and with it pushing up import prices which is going to make our already high inflation much higher.
Don't expect much more of a reduction in fuel prices unless the pound finds some strength again.
What this essentially means (because all oil is paid for in $'s) is that a barrel today costs £60.75, which would have bought a $120.89 barrel 2 weeks ago.
I personally think thats why we're stuffed in the UK - the pound has been very strong over the past few years - its now unwinding and with it pushing up import prices which is going to make our already high inflation much higher.
Don't expect much more of a reduction in fuel prices unless the pound finds some strength again.
13 August 2008, 06:07 PM
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