Recently it's seemed like every week we get a new record high oil price. So this week was looking good, oils prices stable, even falling back a bit and then.....
news.bbc.co.uk/1/hi/business/7501939.stm
$147
This time it's Irans fault.
last week it was oil speculators. The week before that it was the Saudis not pumping enough.
I wonder who will get the blame next week?
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5 live were doing a piece about headline grabbing business stories. Yesterday one news feed said oil had 'tumbled' $5 a barrel!
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The era of cheap oil is over. All the developing nations are getting richer, buying cars, and demanding more of the stuff, the population is rising, its a simple case of production not keeping up with demand, and any oil left is going to be a whole lot more expensive to extract. So better get that bike out of the shed! The oil price might go down eventually, but not to its previous levels. I'm more concerned with the extortionate
tax on fuel here. But then if the government lowered fuel duty, that would encourage people to use their cars more often, raising CO2 levels, and so it goes on....
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Maybe when it's over $200 a barrel demand will calm down a bit !
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I expect some time this year to see $95,$120 and possibly $175. If Iran is bombed then $250.
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Lehman Brothers has estimated a fall to $130 this quarter then $93 in due course in 2009.
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Given that oil is about $140 a barrel, and a barrel is is 35 imp. gallons it follows that a gallon of the stuff works out at about two quid per gallon (say two dollars to the pound), before refinement - or are my simplistic calculations wrong
Edited by none on 15/07/2008 at 22:38
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So unrefined, oil is $4 an imperial gallon and yet refined, delivered, with duty imposed and a profit margin added for the retailer, it's only $5.13 an imperial gallon at the pump in the US? Certainly highlights how lean and high-volume the supply chain is.
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Certainly highlights how lean and high-volume the supply chain is.
But some people take a different view:
www.honestjohn.co.uk/forum/post/index.htm?t=64958&...e
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How come when the price of oil goes up, it goes up straight away at the pumps, but when it comes down the pump price never moves.
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Oil is now down $18/barrel off its peak - local garage has put the price up by 1p per litre compared to last week.
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