oil is on its way down

[Deleted User]

now $105 a barrel and prospects of <$100

http://www.ft.com/cms/s/0/67b0eed6-7924-11dd-9d0c-000077b07658.html?nclick_check=1

I am so glad I didn`t fix or cap

1carminestocky

Don't worry, I'm sure the energy companies have some of their most creative minds working on the 'next' commodity to link gas prices to. Obviously it has to be something that's increasing exponentially. Jonathan Woss's yearly salary, anyone?

Edit: To be serious for a minute, I'm finding this whole scenario quite funny. The energy companies have been caught with their pants well and truly down this time...

going2die_rich

I believe OPEC are meeting soon and it's expected they are going to reduce the supply to help boost up the prices again

1carminestocky

They probably need a boost in prices again to help pay for Manchester City's new team.


Edit: Serious for a second, this fall is DESPITE all oil fields in the Gulf of Mexico being shut down ahead of Gustav arriving! These fields supply approx 25% of the US's oil needs.

[Deleted User]

the oil price is being linked to worldwide drop in usage due to economic difficulties

1carminestocky

But wholesale gas prices in the UK continue to rise? How can this be?

mech_2

The summer will end soon.

beingjdc

kittie wrote: »

I am so glad I didn`t fix or cap

But you don't pay your electricity and gas bills in dollars, you pay them in sterling, and that's down 15% against the dollar, so you need to add that onto the oil price to compare it with prices a few months ago.

1carminestocky

mech wrote: »

The summer will end soon.

I'm assuming gas prices are 'loosely linked' to seasons as well? :rolleyes:

KimYeovil

Plus, of course, with many people recoursing to reducing their actual consumption, rather than just their charges, the businesses have to try to recoup for that anomaly as well.

1carminestocky

KimYeovil wrote: »

Plus, of course, with many people recoursing to reducing their actual consumption, rather than just their charges, the businesses have to try to recoup for that anomaly as well.

Most 'normal' businesses would actually REDUCE their prices in just such a scenario.