News3 mins ago
Petrol Prices
With the news that the cost of oil around the world is plummeting, and in the US has dropped below zero - at one point today it was minus $40 a barrel - let's hope this fall is reflected in the price we pay for petrol in the UK. Didn't seem to be a when I put some petrol in my car today.
Unfortunately the price here cannot go below 70p per litre, even if the suppliers gave it away, as there is 57.95p duty, plus 11.5p in VAT.
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Unfortunately the price here cannot go below 70p per litre, even if the suppliers gave it away, as there is 57.95p duty, plus 11.5p in VAT.
https:/
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The price has dropped because demand has dropped.
You are supposed to stay in your home except to make essential journeys. We are supposed to work from home if at all possible.
So a price cut now when we cannot use our vehicles is like handing a drowning man a glass of water - utterly pointless.
Reduced petrol prices should result in cheaper goods in shops, as transportation costs have reduced. Sadly from what I see, supermarket prices have risen, as they cash in on shortages caused by panic buying.
You are supposed to stay in your home except to make essential journeys. We are supposed to work from home if at all possible.
So a price cut now when we cannot use our vehicles is like handing a drowning man a glass of water - utterly pointless.
Reduced petrol prices should result in cheaper goods in shops, as transportation costs have reduced. Sadly from what I see, supermarket prices have risen, as they cash in on shortages caused by panic buying.
"The price has dropped because demand has dropped."
Not strictly true Gromit.
Demand has dropped for a multitude of things so have those prices dropped ?
The reason is the word the BBC article conveniently leaves out - 'derivatives', which were probably also the cause of the 2008 'Great Financial Crisis'.
The same capitalist profit accumulation scam laid bare again, this time blamed on the 'invisible hand' of those dastardly 'speculators' ; some pundits claim that for every real barrel of oil there is 60,000 paper barrels of oil(derivatives).... and for every real ounce of gold there are thousands of ounces of paper gold (derivatives), NO-ONE really knows the actual amount of this fantasy, capitalism casino sham(e), but estimates at the 2008 GFC were a worldwide derivatives market of ~ 1,400,000,000,000,000 dollars ( 1.4 quadrillion ) and now ~14 quadrillion dollars, 175 times the size of current global GDP. (~ 80 trillion dollars)
[it was an American who came up with 'derivatives' ]
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Not strictly true Gromit.
Demand has dropped for a multitude of things so have those prices dropped ?
The reason is the word the BBC article conveniently leaves out - 'derivatives', which were probably also the cause of the 2008 'Great Financial Crisis'.
The same capitalist profit accumulation scam laid bare again, this time blamed on the 'invisible hand' of those dastardly 'speculators' ; some pundits claim that for every real barrel of oil there is 60,000 paper barrels of oil(derivatives).... and for every real ounce of gold there are thousands of ounces of paper gold (derivatives), NO-ONE really knows the actual amount of this fantasy, capitalism casino sham(e), but estimates at the 2008 GFC were a worldwide derivatives market of ~ 1,400,000,000,000,000 dollars ( 1.4 quadrillion ) and now ~14 quadrillion dollars, 175 times the size of current global GDP. (~ 80 trillion dollars)
[it was an American who came up with 'derivatives' ]
https:/
sevenOP
In 2010 the US were producing 40 Billion barrels. Now they produce 200 Billion barrels. That over supply meant the price dropped.
So the Saudis and Russia set a low oil price Below the US shale oil extraction cost (hoping to make it unviable).
That was working, but then Coronavirus hit, and the worlds biggest oil importer, China, bought less oil, and there isn’t enough storage capacity to keep present levels of production.
So they now find themselves selling it for less than it costs to produce.
In 2010 the US were producing 40 Billion barrels. Now they produce 200 Billion barrels. That over supply meant the price dropped.
So the Saudis and Russia set a low oil price Below the US shale oil extraction cost (hoping to make it unviable).
That was working, but then Coronavirus hit, and the worlds biggest oil importer, China, bought less oil, and there isn’t enough storage capacity to keep present levels of production.
So they now find themselves selling it for less than it costs to produce.
in the US oil prices were 17.50 dollars a barrel but it collapsed yesterday going down to minus 37.50 dollars a barrell first time thats happened in history
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