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Chat => Sports, Hobbies & Motors => Topic started by: DEViANCE on January 25, 2008, 21:27:14 PM

Title: Oil Prices
Post by: DEViANCE on January 25, 2008, 21:27:14 PM
The price of a oil barrel has gone down, its at about $86 at the moment, from $100 not so long ago.

Why is fuel still at an all time high?
Title: Re:Oil Prices
Post by: Eggtastico on January 25, 2008, 22:40:58 PM
because the ftse is on its arse
Title: Re:Oil Prices
Post by: Serious on January 25, 2008, 22:42:56 PM
It isnt, the all time high was over $100.

The oil price is based on fuel use, supply, reserves and level of panic in the market. US reserves have been low, leading to increased panic. Supply has been pretty constant and use hasnt been quite as high as feared. So theres a bit more fuel in the system than they expected a couple of months ago, this reduces panic and therefore the price drops. Dont expect it to stay low, demand, from China and other emerging economies is increasing, that will push prices up again sooner rather than later.

The fuel price is also limited by the amount of oil that can be converted into fuel, and a set level of greed. What you are going on about is almost entirely the corporate greed factor.

;)
Title: Re:Oil Prices
Post by: Mark on January 25, 2008, 23:16:28 PM
They have gotten used to raking in the amount they are now, theres no way theyre going to reduce it.

Greed takes over. This world is getting ever more greedy by the year
Title: Oil Prices
Post by: knighty on January 26, 2008, 00:16:14 AM
also... its worth remembering that oil is paid for in dollers..... and the doller is s**t low compaired to the pound right now..... compair it to a few years ago and it should be half price !
Title: Re:Oil Prices
Post by: Serious on January 26, 2008, 00:31:03 AM
It used to hover between $1.50-1.60 to the pound but its now nearly $2 instead.
Title: Oil Prices
Post by: Cheule on January 26, 2008, 14:21:34 PM
Diesel has hit 110.9p here :(
Title: Re:Oil Prices
Post by: Serious on January 27, 2008, 01:31:28 AM
The authorities are being pressured into having a look at the gas and electric companies, this is no different, too few companies selling make it easy for them to push the prices up.

http://news.bbc.co.uk/1/hi/business/7210354.stm
Title: Re:Oil Prices
Post by: DEViANCE on January 31, 2008, 15:08:20 PM
Shell anounced profits of £14,000,000,000 today, I think that is f**king obscene when our fuel bills are so expensive.
Title: Re:Oil Prices
Post by: addictweb on January 31, 2008, 15:09:56 PM
Quote from: DEViANCEShell anounced profits of £14,000,000,000 today, I think that is f**king obscene when our fuel bills are so expensive.

My thoughts exactly.
Title: Re:Oil Prices
Post by: Eggtastico on January 31, 2008, 15:15:43 PM
not really..

Shell dont really make much money from fuel - they get 32% per litre - thats before overheads/costs/delivery,etc.
The goverment take 67% in TAX & VAT - if shell cut their price by 2p, then the goverment should follow & cut it by 4p
Title: Re:Oil Prices
Post by: DEViANCE on January 31, 2008, 15:32:21 PM
Quote from: EggtasticoShell dont really make much money from fuel

the only thing they sell is oil/fuel and they made £14billion PROFIT last year thats £1,500,000 an hour, even you dont make that much Egg.

edit: you are right tho, the govts income from fuel tax must be in the 100billions.
Title: Re:Oil Prices
Post by: Eggtastico on January 31, 2008, 15:49:01 PM
Quote from: DEViANCE
Quote from: EggtasticoShell dont really make much money from fuel

the only thing they sell is oil/fuel and they made £14billion PROFIT last year thats £1,500,000 an hour, even you dont make that much Egg.

edit: you are right tho, the govts income from fuel tax must be in the 100billions.

160 litres in a barrel of oil
That will make about 80 litres of petrol & 25 litres of diesel
£50 a barrel  - 32p * 105 = £33.60

so they arent really making their money from the petrol.
Its just an ofset of a by product.

ahh

http://www.energy.ca.gov/gasoline/whats_in_barrel_oil.html
Title: Re:Oil Prices
Post by: Serious on January 31, 2008, 17:10:50 PM
Quote from: Eggtasticonot really..

Shell dont really make much money from fuel - they get 32% per litre - thats before overheads/costs/delivery,etc.
The goverment take 67% in TAX & VAT - if shell cut their price by 2p, then the goverment should follow & cut it by 4p

So they dont make that much profit from fuel. A totally misguided statement.

They dont make that much from petrol stations would be correct, however, that is only a third of the issue. They also make money from the initial price of oil, which is high ATM So there is a huge wodge of profit from that, last year it was 57$ a barrel while this year its $91. Then there is the refineries, they also make a huge wodge of cash from processing oil into useable fuel.

They sell billions of litres of fuel a year, even making just a penny a litre profit would give obscene amounts of profit.
Title: Re:Oil Prices
Post by: Eggtastico on January 31, 2008, 17:30:30 PM
Quote from: Serious
Quote from: Eggtasticonot really..

Shell dont really make much money from fuel - they get 32% per litre - thats before overheads/costs/delivery,etc.
The goverment take 67% in TAX & VAT - if shell cut their price by 2p, then the goverment should follow & cut it by 4p

So they dont make that much profit from fuel. A totally misguided statement.

They dont make that much from petrol stations would be correct, however, that is only a third of the issue. They also make money from the initial price of oil, which is high ATM So there is a huge wodge of profit from that, last year it was 57$ a barrel while this year its $91. Then there is the refineries, they also make a huge wodge of cash from processing oil into useable fuel.

They sell billions of litres of fuel a year, even making just a penny a litre profit would give obscene amounts of profit.

so.. out of 32p before expenses, how much do actually think profit is?
Title: Re:Oil Prices
Post by: Serious on February 01, 2008, 01:35:54 AM
They were making a tidy profit at twenty-five pence a litre.
Title: Re:Oil Prices
Post by: Privateer on February 01, 2008, 10:21:24 AM
Another sneaky Labour Government tactic, my dad bought a diesel, because the pump price on diesel was much cheaper, now diesel pump prices are dearer than petrol.