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Are we facing another major threat to recovery?
shortchanged_2
Posts: 5,546 Forumite
http://www.bbc.co.uk/news/business-16396026
Oil prices rose sharply today based on 'global optimism' :think: and issues in the Middle East with Iran.
We all know the detrimental effect of high oil prices.......... increasing inflation, commodity prices etc.
With us already paying falsely inflated prices at the pumps it's just what this economy needs now, even higher prices at the pumps.
Let's hope this is a temporary blip otherwise we are in for even grimmer times ahead. Basically there is no way the UK economy can withstand any major increase in oil prices over the next few months.
Oil prices rose sharply today based on 'global optimism' :think: and issues in the Middle East with Iran.
We all know the detrimental effect of high oil prices.......... increasing inflation, commodity prices etc.
With us already paying falsely inflated prices at the pumps it's just what this economy needs now, even higher prices at the pumps.
Let's hope this is a temporary blip otherwise we are in for even grimmer times ahead. Basically there is no way the UK economy can withstand any major increase in oil prices over the next few months.
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Comments
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Nice to hear of this "global optimism".0
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Seems Petroplus are in trouble,they've had to idle 3 French refineries,that may well close in the long term.
Banks have withdrawn credit to buy crude supplies,does'nt bode well for Coryton refinery.Official MR B fan club,dont go............................0 -
shortchanged wrote: »falsely inflated prices
There is no such thing.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »There is no such thing.
How do you explain then Hamish why petrol prices at the pumps never return to a pre boom oil price. Prices at the pumps are still now not much lower than they were back in April/May when crude was a around $125 a barrel.
The average over the past 3 months has been around $105 - $110 a barrel.
I call that artificially overinflating prices. Basically people get used to paying these high prices so are chuffed to bits when garages knock an odd penny off a litre.0 -
shortchanged wrote: »How do you explain then Hamish why petrol prices at the pumps never return to a pre boom oil price. Prices at the pumps are still now not much lower than they were back in April/May when crude was a around $125 a barrel.
$ was trading around 1.66 in May. Now around 1.55.0 -
shortchanged wrote: »How do you explain then Hamish why petrol prices at the pumps never return to a pre boom oil price.
Prices at the pumps are still now not much lower than they were back in April/May when crude was a around $125 a barrel.
The average over the past 3 months has been around $105 - $110 a barrel.
Because something like 60% to 70% of the price of petrol is tax.
And another few percent is retailer margin.
And another few percent is the cost of refining and transporting.
So the cost of crude is a small percentage of the cost of a litre of petrol or diesel, and movement of the price of crude will have a correspondingly small effect on prices at the pumps.I call that artificially overinflating prices.
There is no such thing.Basically people get used to paying these high prices so are chuffed to bits when garages knock an odd penny off a litre.
You really have no idea how economies work, do you?“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »You really have no idea how economies work, do you?
No, do you?0 -
PREDICTION: Oil prices will rise. World will survive.0
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shortchanged wrote: »No, do you?
Enough to know there are no such things as "falsely inflated prices" or "artificially overinflated prices".
Just prices, subject to supply and demand.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Actually you can argue that petrol prices are artificially overinflated because there has been a tax accelerator active for at least some of the last few years to discourage the use of petrol.0
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