Oil falls below $100 a barrel!

mobby · 09-09-2008 9:04pm #1

I know this has been done to death, but I see oil has fallen to under $99 a barrell http://news.bbc.co.uk/2/hi/business/7605584.stm yet I still see prices of €1.34 for diesel how is this let go on? Oil companies are getting away with daylight robbery and no one seems to give a dam.
Rant over, do I fell any better, NO.

BoardsRanger · 09-09-2008 9:07pm

http://news.sky.com/skynews/Home/Business/Oil-Prices-Fall-Below-100-A-Dollar-After-Opec-meeting-Vienna/Article/200809215096149?lpos=Business_2&lid=ARTICLE_15096149_Oil%2BPrices%2BFall%2BBelow%2B%2524100%2BA%2BDollar%2BAfter%2BOpec%2Bmeeting%2BVienna

So in july when oil prices peaked at $145 a barrel- petrol prices hovered around the €1.32 mark. someone please correct me if my maths is wrong, but does that not suggest that petrol prices should be sub €1 !! chances of getting petrol at that price is slim!

mobby · 09-09-2008 9:09pm

beat you to it by 3mins:D

challengemaster · 09-09-2008 9:10pm

Well actually if you work it out, petrol prices should really be around 30-40cents, if not cheaper. We're being massivly overcharged for it anyway...

BoardsRanger · 09-09-2008 9:12pm

mobby wrote: »

beat you to it by 3mins:D

haha! great minds eh!

bazzachazza · 09-09-2008 9:14pm

Only Brent crude is below $100 , Nymex Crude Future $102.45 and has fallen by $3.89 today alone. So hopefully we will see it below $100 tomorrow.

In truth the price at the pump should be sub 1.20 at least shortly.

fifth · 09-09-2008 9:40pm

Ohh.. I hope it goes down soon.. Really haven't properly filled my tank in ages.

unkel · 09-09-2008 9:40pm

mobby wrote: »

beat you to it by 3mins:D

You did, but BoardsRanger's thread title was better

Threads merged!

And a bit of good news it has to be said. All those doom merchants predicting it would be over $200 within months :rolleyes:

jake59 · 09-09-2008 9:49pm

they are quick enough to raise their prices at the pumps and blame it on the escalating cost of oil but this is just silly!! there was even a 2c rise on petrol last week while the price per barrel of oil was going down. it's the usual story.... the Irish are getting rode... please bend over and take it like men.

NewApproach · 09-09-2008 10:04pm

BoardsRanger wrote: »

http://news.sky.com/skynews/Home/Business/Oil-Prices-Fall-Below-100-A-Dollar-After-Opec-meeting-Vienna/Article/200809215096149?lpos=Business_2&lid=ARTICLE_15096149_Oil%2BPrices%2BFall%2BBelow%2B%2524100%2BA%2BDollar%2BAfter%2BOpec%2Bmeeting%2BVienna

So in july when oil prices peaked at $145 a barrel- petrol prices hovered around the €1.32 mark. someone please correct me if my maths is wrong, but does that not suggest that petrol prices should be sub €1 !! chances of getting petrol at that price is slim!

Havnt done any maths on it, but the fact that the dollar has strengthened against the euro has nullified much of the drop in price of oil

mike65 · 09-09-2008 10:05pm

The value of the euro has fallen against the dollar from 1.56 to 1.41, also the price of oil and the price of fuel you buy is almost completely disconnected due to the tax wedge.

Mike.

NiSmO · 09-09-2008 10:07pm

This post has been deleted.

VH · 09-09-2008 10:11pm

unkel wrote: »

You did, but BoardsRanger's thread title was better

Threads merged!

And a bit of good news it has to be said. All those doom merchants predicting it would be over $200 within months :rolleyes:

this has as much to do with fanny mae and freddie mac as anything else - i suspect its the calm before the real storm

Anan1 · 09-09-2008 10:11pm

NiSmO wrote: »

This post has been deleted.

Take a deep breath and read mike65's post - it's the one directly above yours.;)

BoardsRanger · 09-09-2008 10:20pm

mike65 wrote: »

The value of the euro has fallen against the dollar from 1.56 to 1.41, also the price of oil and the price of fuel you buy is almost completely disconnected due to the tax wedge.

Mike.

good point. I also read last week that motorists might be a target in the forthcoming budget. i didn’t think that tax wedge could get any bigger!

Gypo · 09-09-2008 10:23pm

mike65 wrote: »

The value of the euro has fallen against the dollar from 1.56 to 1.41, also the price of oil and the price of fuel you buy is almost completely disconnected due to the tax wedge.

Mike.

Spot on, but when the price of Petrol / Diesel was flying up back in July, the rocketing price of crude was widely blamed so it's not surprising really that some people get annoyed when they don't see the substantial fall in crude replicated at the pumps

TheBazman · 10-09-2008 5:56am

The Eur has weakened around 12.5% from the highs. Oil has fallen 31% from the highs in only USD terms. If oil was $147 per barrell at the highs, this was €91.87 per barrell. Now with oil at $103 per barrell, this equates to €72.80 at today's exchange rate. So in EUR terms oil has fallen 20.7%.

So if the price at the pumps when oil was at the highs was say €1.40, all other things being equal, it should now be €1.11 (which obviously it's not)

TheBazman · 10-09-2008 6:02am

Oh and OPEC have just announced a production cut - looks like they dont want to give up any of their excessive profits

L1011 · 10-09-2008 7:52am

TheBazman wrote: »

The Eur has weakened around 12.5% from the highs. Oil has fallen 31% from the highs in only USD terms. If oil was $147 per barrell at the highs, this was €91.87 per barrell. Now with oil at $103 per barrell, this equates to €72.80 at today's exchange rate. So in EUR terms oil has fallen 20.7%.

So if the price at the pumps when oil was at the highs was say €1.40, all other things being equal, it should now be €1.11 (which obviously it's not)

You're forgetting that a large % of the price is fuel duty (fixed) and VAT. Its close enough to what it "should" be.

TheBazman wrote: »

Oh and OPEC have just announced a production cut - looks like they dont want to give up any of their excessive profits

Also theres not enough refinery capacity for all the oil thats been drilled and sold during the time it was insanely high.

Bluetonic · 10-09-2008 7:56am

NiSmO wrote: »

This post has been deleted.

Me too, really is no need for another thread to cover the subject.

10-09-2008 8:23am

TheBazman wrote: »

Oh and OPEC have just announced a production cut - looks like they dont want to give up any of their excessive profits

It will be very interesting to see what difference this makes.

My bet is not a lot.

edit:
From Bloomberg

The work by Michael Masters, president of the Masters Capital Management hedge fund, blames investors who buy and hold an index of commodities for driving prices to records, and for their subsequent drop. It comes a day before the U.S. Commodity Futures Trading Commission is set to discuss its own study of energy trading with a congressional committee.

Masters testified three times before Congress this year, arguing that limits on traders would cut oil prices to $65 to $70 a barrel. He has been cited by lawmakers who introduced at least 20 measures to curb speculation. Congressional pressure on the CFTC to step up enforcement and restrict anonymous trades has pushed index traders out of their positions, Masters said.

The elephant in the room the whole time was that oil prices spiked just as the sub prime meltdown began. All the money deserted financials and went into commodities.

TheBazman · 10-09-2008 11:33am

MYOB wrote: »

You're forgetting that a large % of the price is fuel duty (fixed) and VAT. Its close enough to what it "should" be.

Also theres not enough refinery capacity for all the oil thats been drilled and sold during the time it was insanely high.

I did say "all other things being equal"

I dont think the OPEC cut will have any real effect - It feels to me that a lot of speculators aka Hedge Funds have taken a lot of pain, especially when it seemed as if hurricane season would drive us to new highs. This didnt happen and the vast majority are now licking wounds. In this sort of environment I dont think a small cut in production will do anything major to prices

Heroditas · 10-09-2008 11:46am

mike65 wrote: »

The value of the euro has fallen against the dollar from 1.56 to 1.41,

That's a 9.6% drop in the value of the €
Oil has dropped by considerably more than 9.6% in the same timeframe.

EDIT: just seen what Bazman posted. So .... "wot 'e said!"

kluivert · 10-09-2008 12:24pm

+1 with Bazman.

The price at the pumps should be reducing.

I am sick of listening to the excuses, "we bought stock at higher price, wage costs of have gone up......bah bah bah"

The other half travels to Dublin for work everyday, it costs 80e a week to run the oil burner, if the price at the pumps reflected the change in oil and FX difference then this should cost her around 65e a week.

Well done to the owners of petrol stations who are pocketing our hard earned cash, to keep them in M5's and AMG (Come to Carrickmacross Monaghan if you dont believe me) and thus I dont believe that petrol stations are making a lost and going out of business.

Have you ever seen an empty forecourt????

I hate this country!

L1011 · 10-09-2008 12:30pm

If you don't believe theres ones going out of business how can you explain about 1000 stations closing in a decade?

kluivert · 10-09-2008 12:32pm

MYOB wrote: »

If you don't believe theres ones going out of business how can you explain about 1000 stations closing in a decade?

Bad management and site location.

There is four petrol stations in the small town I live in, and three of them have had major work done to the premises in the last two years, the owner of one drives an AMG one week and and M5 the next. Maybe he won the lotto, the other owners also like driving big cars Range Rover Vogue for example.

L1011 · 10-09-2008 12:37pm

It would be fairly unlikely for 'bad managment and site location' to suddenly hit HALF of an entire industry, when often the stations in question had been ticking over grand for decades.

We've had a station owner post in this thread as it is - they make their money off the shops. My local Centra owner drives a 7 series - there is a lot of cash to be made in convenience stores these days.

kluivert · 10-09-2008 12:48pm

These are solely petrol stations with small shops, there was a fifth which was badly located because when the new by pass opened the old main road was only basicly used for residents only kinda thing and they went out of business.

Alot of stations have copped on to the fact that they cant make money on fuel alone and have developed their stations into small shops as well - this is called good management!

Anyway all this aside the price at the jumps should be reducing at a quicker rate than it is.

L1011 · 10-09-2008 12:59pm

Look back in this thread at the price list for the actual retailers - they cannot make it drop any further. Blame lies with the distributors, not station owners.

Wolverine_1999 · 10-09-2008 1:12pm

It's a joke alright.. eveyone is "used" to having to pay an exorbanent price for petrol.

10-09-2008 1:13pm

kluivert wrote: »

+1 with Bazman.

The price at the pumps should be reducing.

I am sick of listening to the excuses, "we bought stock at higher price, wage costs of have gone up......bah bah bah"

The other half travels to Dublin for work everyday, it costs 80e a week to run the oil burner, if the price at the pumps reflected the change in oil and FX difference then this should cost her around 65e a week.

Well done to the owners of petrol stations who are pocketing our hard earned cash, to keep them in M5's and AMG (Come to Carrickmacross Monaghan if you dont believe me) and thus I dont believe that petrol stations are making a lost and going out of business.

Have you ever seen an empty forecourt????

I hate this country!

*yawn* this has been done to death. Most petrol stations make the square root of FA on fuel. In fact many are kept going by the shop where they can make more generous margins.
I know this for a fact my friend runs one.

If there was really so much profit being made on petrol why are all the forecourts closing?

If you hate the country so much just leave. We have enough whingers! I think you might be if for a shock how expensive fuel is other countries, we are on the cheaper end of the scale.:D

Wolverine_1999 · 10-09-2008 1:19pm

ronoc wrote: »

*yawn* this has been done to death. Most petrol stations make the square root of FA on fuel. In fact many are kept going by the shop where they can make more generous margins.
I know this for a fact my friend runs one.

If there was really so much profit being made on petrol why are all the forecourts closing?

If you hate the country so much just leave. We have enough whingers! I think you might be if for a shock how expensive fuel is other countries, we are on the cheaper end of the scale.:D

We are in the cheaper end of a scale for fuel, yes. But the cost of insurance and car tax quickly fills up the gap of the price of fuel.

Oil falls below $100 a barrel!

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