Oil prices

lypsey

Have you all noticed the rising oil prices over the last few weeks. Inflation is going to be under massive pressure over the next few months

I would bet that interest rates are going to have to climb much higher.

http://www.reuters.com/article/hotStocksNews/idUSSP7378520070413

Also I notice today that wage rises are way , way above what the BOE would like

If interest rates go up 1 or 2% watch the house prices crash and burn

kingkano

the sky is falling the sky is falling.... arggghhh

TJ27

Brilliant! I've just sold my car and am not intending to replace it. I've a small mortgage but a few quid in the bank. I might get a better pay rise than expected and my home is worth at least 5x what I paid for it.

So this is all good news for me, right?

And if you're going to bet on the interest rates rising, then you'll be quids in too, right?

And pretty soon everybody will be able to afford a house!!

Anybody else got any good news? What a great start to the weekend!!

Generali

According to RBS, the sterling oil price fell by 22% in 2006.

The only thing that will make the MPC raise rates significantly, IMVHO, is a sharp fall in the value of the Pound. The choice facing the BoE will then be between recession and possible deflation (if they raise rates) and stagflation (if they cut).

I am coming to the opinion that this madness can continue for another year or two before the wheels fall off.

seletar

Lypsey do not have nothing better to do, than try and scare everybody.
Is the world really going to end.No don`t answer that !

Generali

seletar wrote: »

Lypsey do not have nothing better to do, than try and scare everybody.
Is the world really going to end.No don`t answer that !

Now really isn't the time for fear. The time for fear is when the £ starts falling quickly.

lypsey

Selatar , No I am not trying to scare anyone. It is very simple economics . If inflation is rising (and it will) and pay rises are starting to get out of control then interest rates will go up.

If you take afew minutes to go to Bloomberg.com you will now see that instead of the yanks thinking interest rates and inflation had peaked they are now fearing that they will go higher

It doesn't take a lot to work out that we will follow the rest of the world

Lastly when I was 20 years old (21 years ago) , I bought a very nice flat at the top of the housing market . I was in negative equity for nine years. It is very hard to move on from this position(almost impossible) I really believe that this crash will be way , way worse than the last and unfortuantley a lot of people are going to be in deep s££t. I try to offer advice as I see it , and I am sorry if this is negative for you.

lypsey

Selatar , take a look at the thread from a young lady titled "negative equity.....". It is already happening

Hereward

lypsey wrote: »

Have you all noticed the rising oil prices over the last few weeks.

Weren't these rises linked to that fact the Iran was holding some of our personnel, and the market reacting to a possible conflict? With this pressure now easing I expect that oil prices will fall back in the near future, so the inflationary pressure will be much diminished.

prudryden

I've just ordered all the back series of "The Good Life" with Felicity Kendall and Richard Bryars in order to start practicing now.

lypsey

Hereward , this will keep you up to date

(Reuters) - Oil topped $64 on Friday, extending a 3 percent gain a day earlier, as traders fret over a spate of refinery outages in the United States that drained gasoline stocks ahead of the summer driving season.

The market was also supported by a caution by the International Energy Agency (IEA) that oil stocks in industrialised nations may drop further in coming months, after recording the biggest first-quarter decline in a decade.

U.S. crude rose 26 cents a barrel at $64.11 by 4:54 a.m., after jumping $1.84 on Thursday. London Brent for May rose 54 cents at $69.26 on its expiry day.

Crude prices are up 28 percent from this year's low of $49.90 in January.

U.S. gasoline inventories have slumped more than 12 percent since early February, with several big plants undergoing planned shutdowns for maintenance, pushing up U.S. gasoline to a fresh eight-month high of $2.2040 a gallon as of 4:29 a.m.