Brent crude edged above $120 a barrel to $120.08, a two-and-a-half-year high.

Kohoutek

shortchanged wrote: »

I've been saying it for some time now that the rising oil prices are what is going to be the biggest problem for this economy and the global economy in the near future.

Perhaps another problem is that neoclassical economics doesn't recognise it as a problem - the theory goes that higher prices will stimulate more oil exploration and production and in event, everything is infinitely substitutable. Julian Simon 'proved' it apparantely.

Niksan

Let's not forget the £ is up on the $ for another consecutive day, so I'm guessing this doesn't make it as higher for us as if the price per barrel fell but the £ fell more against the $, is that right? So we should really gaugue it on £ per barrel rather than $.

chucky

shortchanged wrote: »

I've been saying it for some time now that the rising oil prices are what is going to be the biggest problem for this economy and the global economy in the near future.

I've said it before and I'll say it again, that unless oil prices start to head downwards soon it will push the UK back into recession.

maybe it will be a factor, maybe not.

the price of oil does go up and down because of supply issues and political issues. it won't be at this level for ever.

chewmylegoff

chucky wrote: »

maybe it will be a factor, maybe not.

the price of oil does go up and down because of supply issues and political issues. it won't be at this level for ever.

yeah, it will be much higher.

Thrugelmir

GeneHunt wrote: »

Do you think people adjust to petrol price changes immediately by spending a little bit less each month, or do people go overdrawn, use their savings, etc in the short run and only adjust over a longer time period?

People adapt.

Drive less. Live closer to work. Use cheaper modes of transport or more efficient cars. Car share.

Life goes on.

shortchanged_2

Kohoutek wrote: »

Perhaps another problem is that neoclassical economics doesn't recognise it as a problem - the theory goes that higher prices will stimulate more oil exploration and production and in event, everything is infinitely substitutable. Julian Simon 'proved' it apparantely.

The problem with most of the new oil explorations are at ever increasing depths and more difficult to tap, meaning higher exploration and production costs.

The sooner countries find a genuine alternative to oil dependence the better because effects as a result of its price rises are not good for the global economy.

GeneHunt_2

Brent $126.12

PeterZ_2

Thrugelmir wrote: »

People adapt.

Drive less. Live closer to work. Use cheaper modes of transport or more efficient cars. Car share.

Life goes on.

If the change is gradual then people will adapt quite easily.

If the change is sudden, then we are stuffed.

A bigger problem is that many people will choose to ignore the problem until its too late.

If you have a 4x4 I would suggest flogging it before its only worth scrap value.

If you fancy a cheap 4x4 for some low miles weekend fun, I predict some bargains will be to had over the next few years.

Graham_Devon

$21 until we reach the highest ever barrel price.

We've already hit record pump prices.

To put this in perspective. At the rate it's moving up, if it continued at this rate, we'd hit $147 a barrel, half way through May.

$147 a barrel, could see pump prices at £1.55-60

PeterZ_2

Graham_Devon wrote: »

$21 until we reach the highest ever barrel price.

We've already hit record pump prices.

To put this in perspective. At the rate it's moving up, if it continued at this rate, we'd hit $147 a barrel, half way through May.

$147 a barrel, could see pump prices at £1.55-60

If it continues to rise at its current rate we will soon see a crash in prices due to another recession. Either way, its bad news, choose one of the following:

A - High oil prices
B - Global recession part 2

If the UK had managed to significantly move away from dependance on oil we wouldn't care one jot what the price of oil