OIl under undr $100 a barrel
OIl under undr $100 a barrel
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Discussion

Adrian W

Original Poster:

15,554 posts

258 months

Wednesday 10th September 2008
quotequote all
Yesterday crude dropped under $100 a barrel, so now OPEC are reducing production, of course not in an effort to stimulate demand.

Oil is traded in dollars and the exchange rate has taken a bit of a tumble but surely we must see a drop in petrol and energy prices now.

kambites

71,573 posts

251 months

Wednesday 10th September 2008
quotequote all
We wont see a drop in prices as long as the pound is falling against the dollar as fast as oil prices are falling in dollars. Prices have barely moved when measured in Sterling.

AngryS3Owner

15,855 posts

259 months

Wednesday 10th September 2008
quotequote all
kambites said:
We wont see a drop in prices as long as the pound is falling against the dollar as fast as oil prices are falling in dollars. Prices have barely moved when measured in Sterling.
I don't remember petrol prices going down at all when the pound was rising against the dollar...

Cheeky Jim

1,276 posts

310 months

Wednesday 10th September 2008
quotequote all
Lets not start this again...

we all know that the government and the oil companies will keep it as high as possible. Now we are all used to paying £1.30 a litre for diesel, they are not going to reduce it back down to 0.90p a litre.....

We are collectively over the table, arse in the air waiting for another shafting up the chocolate...

Timmy35

13,014 posts

228 months

Wednesday 10th September 2008
quotequote all
AngryS3Owner said:
kambites said:
We wont see a drop in prices as long as the pound is falling against the dollar as fast as oil prices are falling in dollars. Prices have barely moved when measured in Sterling.
I don't remember petrol prices going down at all when the pound was rising against the dollar...
That might be because oil was rising in price faster/further than the £ vs the $. Oil doubled in value between 2004 and 2007.... the £ strenthened what 20% during that time.

However the rout in the £ has taken place over a period of a few weeks ( never seen anything quite like it ).

kambites

71,573 posts

251 months

Wednesday 10th September 2008
quotequote all
It would be interesting to plot a graph of crude prices in Sterling and compare it to forecourt petrol prices.

Timmy35

13,014 posts

228 months

Wednesday 10th September 2008
quotequote all
Cheeky Jim said:
we all know that the government and the oil companies will keep it as high as possible. Now we are all used to paying £1.30 a litre for diesel, they are not going to reduce it back down to 0.90p a litre.....
yes indeed it's all part of a conspiracy by fuel retailers to sell less of their product. They only do this because the Lizards want to keep all of Earths fuel for themselves. David Ike told me so we ALL know it's the truth.

crossle

1,520 posts

281 months

Wednesday 10th September 2008
quotequote all
Timmy35 said:
Cheeky Jim said:
we all know that the government and the oil companies will keep it as high as possible. Now we are all used to paying £1.30 a litre for diesel, they are not going to reduce it back down to 0.90p a litre.....
yes indeed it's all part of a conspiracy by fuel retailers to sell less of their product. They only do this because the Lizards want to keep all of Earths fuel for themselves. David Ike told me so we ALL know it's the truth.
I'll go and get my tin-foil hat...

XJSJohn

16,152 posts

249 months

Wednesday 10th September 2008
quotequote all
kambites said:
We wont see a drop in prices as long as the pound is falling against the dollar as fast as oil prices are falling in dollars. Prices have barely moved when measured in Sterling.
yes i believe that the fall in oil from $135 to $100 a barrel actually works out in sterling to something like from GBP78 to GBP73 over the same period.

As op rightly surmises, oil prices have "dropped" because of exchange rates, but in actual trade, oil has changed very little in value.

HundredthIdiot

4,477 posts

314 months

Wednesday 10th September 2008
quotequote all
Timmy35 said:
However the rout in the £ has taken place over a period of a few weeks ( never seen anything quite like it ).
Think that's a bit exaggerated. The £/€ has been 1.25-1.27 for ages. Now it's 1.248. I wouldn't call that a rout, just finding a new level.

audidoody

8,598 posts

286 months

Wednesday 10th September 2008
quotequote all
It was well under £1 a litre when the rate was $1.50/£1

Timmy35

13,014 posts

228 months

Wednesday 10th September 2008
quotequote all
HundredthIdiot said:
Timmy35 said:
However the rout in the £ has taken place over a period of a few weeks ( never seen anything quite like it ).
Think that's a bit exaggerated. The £/€ has been 1.25-1.27 for ages. Now it's 1.248. I wouldn't call that a rout, just finding a new level.
Oh god you muppet.

Oil is traded primarily in $.

The £/$ rate has fallen from nearly $2 to the £ to almost $1.75 in a matter of weeks

I've never seen anything like that, because last time a move of like it occured was 1971 when I wasn't even born. And we were entering the last £ crisis.

Edited by Timmy35 on Wednesday 10th September 10:03

HundredthIdiot

4,477 posts

314 months

Wednesday 10th September 2008
quotequote all
Timmy35 said:
HundredthIdiot said:
Timmy35 said:
However the rout in the £ has taken place over a period of a few weeks ( never seen anything quite like it ).
Think that's a bit exaggerated. The £/€ has been 1.25-1.27 for ages. Now it's 1.248. I wouldn't call that a rout, just finding a new level.
Oh god you muppet.

Oil is traded primarily in $.

The £/$ rate has fallen from nearly $2 to the £ to almost $1.75 in a matter of weeks

I've never seen anything like that, because last time a move of like it occured was 1971 when I wasn't even born.
I'm an idiot, not a muppet. Keep up.

I know oil is priced in $, but if the Euro rate is largely the same, why do you say "rout in the £" rather than "rise in the $"?

Genuine question, I'm not a FX expert (obviously).

Timmy35

13,014 posts

228 months

Wednesday 10th September 2008
quotequote all
HundredthIdiot said:
I know oil is priced in $, but if the Euro rate is largely the same, why do you say "rout in the £" rather than "rise in the $"?

Genuine question, I'm not a FX expert (obviously).
Because the thread is about petrol prices, linked to oil prices. And if you read it, in full, you'll see repeated references by several posters to the effect of the £/$ rate.....I would have thought that would make it quite obvious which rate I was referring to.

Here's my post again.....have a read...now which rate do you think I was referring to? WTF made you think of the Euro/£ rate?

Timmy35 said:
That might be because oil was rising in price faster/further than the £ vs the $. Oil doubled in value between 2004 and 2007.... the £ strenthened what 20% during that time.

However the rout in the £ has taken place over a period of a few weeks ( never seen anything quite like it ).
Edited by Timmy35 on Wednesday 10th September 10:11

XJSJohn

16,152 posts

249 months

Wednesday 10th September 2008
quotequote all
Timmy35 said:
HundredthIdiot said:
I know oil is priced in $, but if the Euro rate is largely the same, why do you say "rout in the £" rather than "rise in the $"?

Genuine question, I'm not a FX expert (obviously).
Because the thread is about petrol prices, linked to oil prices. And if you read it, in full, you'll see repeated references by several posters to the effect of the £/$ rate.....I would have thought that would make it quite obvious which rate I was referring to.
You get out of bed the wrong side or something there Tim old bean?

Timmy35

13,014 posts

228 months

Wednesday 10th September 2008
quotequote all
XJSJohn said:
You get out of bed the wrong side or something there Tim old bean?
hehe who me? You know I'm a little ray of sunshine.

XJSJohn

16,152 posts

249 months

Wednesday 10th September 2008
quotequote all
Timmy35 said:
XJSJohn said:
You get out of bed the wrong side or something there Tim old bean?
hehe who me? You know I'm a little ray of sunshine.
let me guess .... Tuesday morning hangover??? hehe

Timmy35

13,014 posts

228 months

Wednesday 10th September 2008
quotequote all
XJSJohn said:
Timmy35 said:
XJSJohn said:
You get out of bed the wrong side or something there Tim old bean?
hehe who me? You know I'm a little ray of sunshine.
let me guess .... Tuesday morning hangover??? hehe
NO......I've just realised how much I'll now loose on the FX rate if I decide to leave this cold, wet, North Atlantic fleapit. irked

crossle

1,520 posts

281 months

Wednesday 10th September 2008
quotequote all
Timmy35 said:
XJSJohn said:
Timmy35 said:
XJSJohn said:
You get out of bed the wrong side or something there Tim old bean?
hehe who me? You know I'm a little ray of sunshine.
let me guess .... Tuesday morning hangover??? hehe
NO......I've just realised how much I'll now loose on the FX rate if I decide to leave this cold, wet, North Atlantic fleapit. irked
Want me to arrange a whip-round?

XJSJohn

16,152 posts

249 months

Wednesday 10th September 2008
quotequote all
Timmy35 said:
XJSJohn said:
Timmy35 said:
XJSJohn said:
You get out of bed the wrong side or something there Tim old bean?
hehe who me? You know I'm a little ray of sunshine.
let me guess .... Tuesday morning hangover??? hehe
NO......I've just realised how much I'll now loose on the FX rate if I decide to leave this cold, wet, North Atlantic fleapit. irked
rofl i did tell you ....

GBP has tanked against SGD and HKD too .... getmecoat