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The price of oil fell by $6/barrel today. What chance the price of fuel falling. I won't hold my breath.
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The price of oil fell by $6/barrel today.
But you forgot to mention that the $/£ ratio changed in the wrong direction too!In a week the change has been from $2.04 to $1.98 to the £.
Edited by jbif on 19/03/2008 at 21:37
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I have to admit that prices up here didn't shoot up when it went from 102 to 110 dollars a barrel.
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All the current speculation about fuel costs and its predicted levels set me thinking. For reasons I blame mainly on not taking best advantage of a reasonable educational start in life I have spent most of the last thirty years slogging up and down roads at the rate of about 40k mls per year and look set to continue having to do that in perpetuity.
In those early days my Cortina did about 25 mpg and cost around a tenner to fill with 4*. My current Mondeo ( hows that for serendipity or brand loyalty or maybe a lack of imagination ) does around 45 mpg and costs about £60 to fill. Anyone less tired (or quite possibly less dim) enough than me to work the maths and build in an inflation adjustment to establish which car costs more per mile in fuel usage in real terms ?
Which was / is the winner - Cortina in 1978 or Mondeo in 2008 ?
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As most of us know by now, the price at the pump is mainly tax. The crude oil price only contributes to a fraction of the £1.08 per gallon in the UK that most people paid today for unleaded petrol.
The relationship between crude priced in $ and the cost in £, for that same barrel of oil in the UK, can be compared by looking at these graphs:
www.upstreamonline.com/market_data/opec_basket/?id...s
www.advfn.com/p.php?pid=forexqkchart&curcode1=GBP&...D
If the £ had not risen in value against the $ in the last two years, and had remained steady at around $1.50 to the £, the cost of the $100 barrel of oil would be about 33% higher, i.e. £66 per barrel, instead of the around £50 per barrel that it is today.
Similarly, most goods that the UK imports are priced in US $; and so we have had the benefit of cheaper Chinese and other imports due to the weak US $.
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As most of us know by now the price at the pump is mainly tax. The crude oil price only contributes to a fraction of the £1.08 per gallon in the UK that most people paid today for unleaded petrol.
What is that fraction these days though - it must be growing?
The crude oil cost of each litre must be something like 40p now.
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And why is diesel up to 10p / litre more than unleaded?
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And why is diesel up to 10p / litre more than unleaded? >>
Just might be because diesel car owners don't need to fill up as much...:-)
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The price of oil fell by $6/barrel today.
And the stock market went back up.
Yesterday when it was going OOOOh goodness, I remarked to my Ms that this looked like bears doing their thing, milking the situation for all they were worth and no one trying to stop them, funny that eh?
Today the carphounds have been named, or near enough.
It's always a relief to be right when you sound off about something you know nothing whatsoever about.
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It's the moving average price that counts - not the spot price , i.e. what you could buy it for today. The 3-month average will give a better idea of the unadorned (pre-tax) price, factored with currency adjustments.
The stock market (in the UK) moved down also - not sure which index some BR's are looking at - oil is bought & sold in the UK as well, although it's priced in dollars.
The £ vs. $ is also up, i.e. pound is appreciating since late January. The least affected by the rise in crude oil price is the EU monetary zone (and possibly India/China).
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