PeteBrant

BBC NEWS | Business | Oil rises on Opec production curb

Oh you complete mother ****ers.

They obviously quite like the idea of Oil being at least $100 per barrel and have decided that is what they are going to make happen.

Mainly because they are a bunch of ****ing greedy ****s that will be first agaionst the wall come the revolution.

AndyC_772

iTrader: (2)

...so cutting production is a poor economic decision how?

Don't get me wrong, I like cheap oil as much as anybody. But extracting it faster than it's being used is pointless - the surplus just has to be stored above ground rather than below it.

It's a finite resource, you know... once production starts getting cut back because there simply isn't any left, then we'll really have something to worry about...

PeteBrant

I don't actually beleive that it is being pumped faster than its being used. And you will struggle to get any information as to if there is or isnt any surplus.

Now that it has broken the glass ceiling, OPEC is not going to let the price go below $100 per barrel.

Lets not forget, this time last year oil was being produced at similar level for much much less. It is market forces and a weak dollar that partially drove the price up, now that the dollar has regained strength, commodities are now less attractive.


And I am staggered that Goldman Sachs have said that Oil bellow $100 per barrel may signal a global recession. What? **** off. Keeping it above will certainly precipitate one.

As for the "price have dropped 30%"... thats as maybe, but they rose by 100% in less than a year.

LG John

Eh, wtf!!!! So oil has dropped by nearly 50% in the last 2 months!! Why the hell hasn't that saving been passed onto the motorists at the forecourt? Why is fuel not down to around or just over £1.00 per litre? I fvcking hate these robbing b@stards (oil companies/government, etc)

Turbo2

Those Premier League players and their salaries don't pay for themselves you know!

PeteBrant

THe Government has nothing to do with the cost of petrol remaining high - Fuel duty and VAT has remained the same.

THis is down to the fuel companies - Always charge what people are prepared to pay.

They dropped it by about 10% from its high, and we all felt better about it

Trouble is, oil fell by 30%

Petrol companies are ****ing robbing *******s.

Sonic'

It is just over a pound a litre, and it has come down, why cant people realise this

PeteBrant

It was around £1.25 at the height of the price per barrel

It is now around £1.13. So it has come down 10%

The cost of oil has dropped 30%

The Zohan

On a slightly different note listening to 5 live on the way home apparently and since privatisation we sell our gas to Europe during the summer months instead of storing it. QWe then buy back Gas at a greater rate during the winter months when demand is higher - how stupid is this?!?

This is a lot to do with privatisation and the fact that the private companies did away with our storage facilities - the big telescopic gas storage tanks you used to see around towns and cities.

so they sell it and make money then buy it back and sell it to us the consumer at a higher rate and make money.


un-fecking-believable!

AndyC_772

iTrader: (2)

But the actual cost of the oil is less than 1/3 of the pump price...

What makes up the cost of 1 litre of petrol?

PeteBrant

So what other costs have risen, then?

Fuel Duty -Nope
VAT? - Nope
Franchisee share? - Nope
Production costs? - Nope

The *only* significant change in the last 6 months has been the price of Oil, and the oil companies have used it to push up the price at the forecourt, and are now reluctant to drop it.


I'll happily be proven wrong if anyone can show me where the extra money has gone per litre, if not direct to the oil companies (Hence the massivley inprove quarterly profits)

AndyC_772

iTrader: (2)

My point is just that, if you start with something that accounts for 30% of the total cost, and reduce that figure by 30%, the overall total does indeed reduce by about 10%. That's just arithmetic.

PeteBrant

But your starting point is wrong.

The link you posted dates back to 2007 Before the siognifacnt rises. In that time, none of the other costs have risen, therefore the "third" becomes 40% and so on.

You are working on the basis that *all* the costs have risen proportionally, and that simply is not the case.

AndyC_772

iTrader: (2)

No, Pete, that's exactly what I'm NOT doing.

Suppose the cost of oil was 40% of the pump price, at £1.25. That makes the oil exactly 50p.

Reduce that by 30% and you get 35p, a reduction of 15p. The 'correct' pump price, assuming everything else remains the same, would then be £1.10.

If it's actually £1.13, that's pretty close, wouldn't you say?

PeteBrant

Hmmm,

We can try it with "real" figures.

Fuel Duty is 50.35 pence
Forecourt costs (according to your link) are 5p
"oil" cost was 50p

Total = 105.35
+VAT @ 17.5% (18.43p))
Grand total 123.8p per litre. (that's close enough)

Petrol reduces by 30%

30% of 50 = 15p therefore oil now costs 35p
Fuel duty = 50.35p
Forecourt = 5p

Total = 90.35
=VAT @ 17.5% = 15.81p

Grand total = 106.16p


I take your point - It's not as bad as I thought it was, if you purely reduce oil by 30%, BUT, the actual price is not what it should be - I reckon they are overcharching by 6p a litre or thereabouts.

Oil companies remain mother ****ers.

Sonic'

Its about 108p 109p around here now

Leslie

Surely the authorities get extra revenue from VAT if the price is kept high.

Anyway we are at the hands of all the greedy rip off merchants!

Les

jacrobat

Opec's power is on the wane anyway with countries such as Russia not being members and members saying one thing and doing another. There is a 6-8 week gap in barrel prices feeding through to the pump and in the case of diesel we import it as out refineries are not set up to produce the quantities now demanded.

PeteBrant

Ahh I'll have to remember that when the price of oil next rockets up.

I think you'll find the same phenomenom as interest rate changes apply; i.e. when it goes up, its on the next day, when it goes down, there's a "delay" while it filters through the system.

zip106

Barrel down to $98 today

mart360

Speak for yourself Pete,

£1.33 and still artificially high


Mart

Kevin Mc

Who is it that is keeping the prices high? Is it the retailers, or is it whoever they buy the fuel from / refineries???

Paul3446

Brent crude is now at $0.96 per barrel, down from a height of $1.47, yet petrol prices have barely moved.

We are getting well and truely shafted, it really is time there was some watchdog or something to check on this sort of thing!

silent running

LOL it's not oil production - it's oil EXTRACTION. No-one in the world is MAKING crude oil, they are collecting it out of the ground. It's their business how much they collect. I love cheap petrol but it's just the market at work...if you think you can do a better job and have all the equipment and infrastructure to get it to me for 50p a litre after the government have taken their cut, then bring it on!