Scary Stuff.... Oil currently at $106.95

Graham_Devon

Risen 4.3% today on the back of the troubles in Libya (and currently still rising).

If you apply the full 4.3% to the pump price, of approx 133p per litre for diesel, it sends it to 139p per litre.

This obviously isn't the way it works, but looks like 3p could be added in the next couple of weeks, to the price at the pumps, at least, if this price holds up.

Heard an economost stating every $2 rise = 1p extra at the pumps.

Graham_Devon

And just found this on another news article, made me chuckle.....pranksters play with fuel price sign

AD9898_2

This is nothing, given the current research and evidence that we have before us (if you just dig a bit), $400 dollar oil will be with us well within a decade.

You see unlike other downturns in the last eight decades, this one won't have any happy ending, we are three and half years in from the financial collapse and still there is no light at the end if the tunnel.

I wonder when the penny will drop ?

Heyman_2

Yeah, scary times indeed.

We've been here before though, I remember paying 124.9 for my diesel a couple of years ago before it all went south again.

Will certainly be interesting to see how it pans out, but high fuel affects everything so gotta hope it won't get too out of hand.

whatyadoinsucka

its amazing these cartels are allowed to operate..

any other industry, the supermarkets couldn't even fix milk prices

Arcaine

Just to point out that Brent Spot is currently $107.40, WTI spot is "only" $86.20. Its amazing but you will never find anyone in the media quoting the lower figure. I am currently trying to find out why brent is trading at such a premium.

http://www.bloomberg.com/energy/

Graham_Devon

I apologise for getting people excited earlier, with the prospect of oil at $106.95.

Currently $108.25!

Jonbvn

whatyadoinsucka wrote: »

its amazing these cartels are allowed to operate..

any other industry, the supermarkets couldn't even fix milk prices

OPEC have much less control over the price than you probably think.

With riots in several large producing countries, what is happening is obviously not related to OPEC. Furthermore, with a suggestion of considerably less reserves in Saudi POO is only headed one way.

Kohoutek

Arcaine wrote: »

Just to point out that Brent Spot is currently $107.40, WTI spot is "only" $86.20. Its amazing but you will never find anyone in the media quoting the lower figure. I am currently trying to find out why brent is trading at such a premium.

In Feb. 2011, WTI was trading around $85/barrel while Brent was at $103/barrel. The reason that most cite for this anomaly is that Cushing [an oil hub in Oklahoma] has reached capacity, depressing the oil market in North America which is centered on the WTI price. However, Brent is moving up in reaction to civil unrest in Egypt and across the Middle East.

Since stockpiles at Cushing cannot be easily transported to the Gulf Coast for export, WTI crude is unable to be arbitraged in bringing the two back into parity. This large spread is likely to continue until unrest across the Middle East subsides or fleets of trucks start hauling oil from Cushing, OK to Port Arthur, TX.

http://en.wikipedia.org/wiki/West_Texas_Intermediate

Jonbvn

Arcaine wrote: »

Just to point out that Brent Spot is currently $107.40, WTI spot is "only" $86.20. Its amazing but you will never find anyone in the media quoting the lower figure. I am currently trying to find out why brent is trading at such a premium.

http://www.bloomberg.com/energy/

I understand that it is related to increased energy supply to the US from frac gas and oil sands.

nearlynew

Whether it's economic, political, social or environmental; every problem we face at the moment is down to resource depletion.

We are at a major turning point in human history - on a par with the industrial revolution.


It might take 1 year or 20 years to play out, but that is what is happening.