fuel prices

[bobthebilda]

For Adeladians, head down to Churchill road in Kilburn. With Costco opening up, I got ULP 91 today for $1.18 cents a litre. I know you need a memebership card to get it, but even the Coles next door was going for $1.19 a litre, and the BP up the road was going for $1.24. Go 1 kIometre away, and the prices reverts back to the Adelaide norm of $1.45 a litre. One more trip back and the Costco membership card has been paid for. Just need to convince the wife to have 10 more kids, so we can get some value out of buying from Costco.

[Jack960]

America started fracking oil a while ago and I believe it has started to hit the market thus there is a price war between the Saudi oil and the American oil. Not confirmed but just what I've heard. The last 2 weeks I've seen it at less than a $1.30 everywhere.

[bobthebilda]

Originally Posted by Big Damo

Why has fuel suddenly become cheap?

The Americans have started to create alot of shale oil (although alot of it is useless for transport fuels), it can be used for other stuff crude oils are used for, thus freeing up the crude oils for transport fuels. The world is still finely balanced on the supply and demand sides, but the saudis have started to worry what if the rest of the world starts to drill for shale
oils as vigourously as the US has. Drilling for shale never really made much sense when the price of a barrel was $100 plus (alot of the oil companies were and still are, surviving on debt). The main oil producers have artificially pushed down the price of oil, to try and throw alot of the shale oil and oil sands companies out of business, or at least to slow down their growth.

$80 a barrel of oil wont last, as over a quarter of the worlds oil is produced at a cost whichever is higher than this, and some companies cant keep going back to shareholders to keep raising money to support loss making enterprises.

[Bossxr8]

Last I heard the yanks were basically self sufficient in oil, no longer needing foreign oil. This has more than likely meant the arabs have less demand now. I've heard predictions oil may go as low as $60 a barrel. Let's hope so.

Even if it did petrol would still be over a $1.20 here probably, ripoff merchants.

[bobthebilda]

Originally Posted by Bossxr8

Last I heard the yanks were basically self sufficient in oil, no longer needing foreign oil. This has more than likely meant the arabs have less demand now. I've heard predictions oil may go as low as $60 a barrel. Let's hope so.

Even if it did petrol would still be over a $1.20 here probably, ripoff merchants.

At $120 a barrel they werent even close to self sufficiency. At $80 a barrel, alot of those shale oil wells arent going to be producing for long. Picture this, Saudia Arabia has a few thousand wells producing 8 to 10 million barrels a day. The US is now producing just slightly more than the Saudis (but the US still uses more than 18 million barrels a day), but they get their 10 million or so barrels a day from over 1 million different oil wells. Alot of the shale oils dont fall into the category of crude oil, and are more like kerosenes and even gases (barrel of oil equivalents). In fact, alot of the shale oils that are produced in the Northern parts of the US, are piped up into Canada, to enable the Canadians to dilute the oil they get from their oil sands, so it can then be piped back around the US.

Lol, just saw on the news that oil was actually US$75.60 a barrel. I remember in 2008 when it got to circa $150 a barrel and the price of fuel then shot up to $1.60 litre. Oil at double the price, and in most parts of the country, petrol is only 10 percent cheaper.

[mik]

Originally Posted by GasOLane

Only for you city folk, us poor country people pay top dollar all the time

Yeah but spare a thought for us poor city dwellers , all that cheaper fuel we get soon goes up in smoke sitting in traffic jams and railway gates on the way to getting our latte`s , and anyway you country bumkins( i mean folk) get cheaper rego dont you ???

[GasoLane]

Originally Posted by mik

Yeah but spare a thought for us poor city dwellers , all that cheaper fuel we get soon goes up in smoke sitting in traffic jams and railway gates on the way to getting our latte`s , and anyway you country bumkins( i mean folk) get cheaper rego dont you ???

The words 'cheap rego' and NSW don't go together.

And I sit in traffic jams as well. The other day there must have been 11-12 cars in front of me at the lights (on a 2 lane road)

[vztrt]

Originally Posted by Big Damo

Why has fuel suddenly become cheap?

When the American dollar strengthens you normally see the price of oil drop.

.....

As for the US, in Albetra (Canadia as dear leader puts it) they now have the largest oil well in the world.

[335POWER]

Originally Posted by bobthebilda

For Adeladians, head down to Churchill road in Kilburn. With Costco opening up, I got ULP 91 today for $1.18 cents a litre. I know you need a memebership card to get it, but even the Coles next door was going for $1.19 a litre, and the BP up the road was going for $1.24. Go 1 kIometre away, and the prices reverts back to the Adelaide norm of $1.45 a litre. One more trip back and the Costco membership card has been paid for. Just need to convince the wife to have 10 more kids, so we can get some value out of buying from Costco.

Or go to United at Blair Athol (next to Coles) on Prospect Rd, and pay $1.19 as well.

[Charliewool]

Originally Posted by Big Damo

Why has fuel suddenly become cheap?

One word.. Election!

[mik]

Originally Posted by Charliewool

One word.. Election!

There is another word that will make prices go down. ........ recession.

[mik]

I read in an article the price of a barrel of oil was $64 ish approximately, and they said it may go down to 55 a barrel , we might get an extended run of cheap fuel, wouldn't that be nice ?

[Charliewool]

Yes, heard it on 3aw.. Could nearly go to under $1.00 per litre (of course the fuel companies won't allow THAT, regardless of barrel price)

[mik]

we live in hope ;).

[Tassie f100]

Last time the barrel price was about $80 and the exchange rate was about 90c retail price of regular 91 was about 95c.Today I filled up with reg diesel at $1.54.9 Reg 91 petrol was $145.9.Apparently freight must be about 30c litre here in Tassis

[GasoLane]

Originally Posted by Charliewool

Could nearly go to under $1.00 per litre

Is it April already ?

[ford man xf]

If only large quantities of petrol could be stored on residential premises...

[ford man xf]

This is a great article which explains it all:

What’s happening to oil prices?

By Evan HorowitzGlobe Staff December 12, 2014

Oil prices hit a five-year low Thursday, dipping below $60 and bringing cheer to Americans at gas stations everywhere. But it’s not just drivers who benefit from cheap oil, it’s our entire economy. When we spend less of our money on gas, we have more to spend on other things, like restaurants and holiday shopping sprees.

Cheap oil has its dark side as well. It reduces people’s incentive to go green, and may slow the transition to renewable energy. What is more, it poses a big challenge for oil-rich countries all over the world, including the world’s largest oil producer -- the United States -- where the oil industry can’t function without high prices.

Why are oil prices falling?

The big reason oil prices have been falling is that supplies are up and demand is down. New sources of oil — including here in the US and in Canada — have added significantly to the global supply. And with Europe still fighting off recession, and cleaner alternatives becoming more price-competitive, demand for oil has fallen well below expectations.

It helps, too, that nobody is trying to stop the slide in oil prices. That responsibility would fall to OPEC, a group of oil-producing nations that works together to set prices and output levels. OPEC could try to push prices back up by limiting production. However, in October, OPEC decided to keep production at current levels, which actually ended up driving prices down more.

As a result, the price of crude has dropped more than 40 percent since the summer, from over $100 a barrel to under $60. That’s a substantial decline, even if it’s not exactly historic (from the mid-1980’s to the mid-2000’s, prices were never above $60.)

How do oil prices affect me?

Oil is everywhere. It’s in your car, your house, your gadgets, your kids’ toys, and almost every piece of plastic you’ve ever touched. So when the price of oil changes, a lot of other things change too.

If you drive, you already know that the price of gasoline has been going down, but really that’s just the beginning of the story. Less money spent on gas means you have more money to spend on other things that you enjoy, whether it’s food, gifts, smartphone apps, theater tickets, or anything else.

And when you spend more money on things you enjoy, retailers make more money, which they can use to hire new workers — who will get more pocket money of their own, which they can spend on things they like, and so on.

Also, if you’re shopping this season, you may find that some products are less expensive. That’s because low gas prices make it cheaper for companies to ship goods around, which can help drive down costs.

Might low oil prices hurt the economy?

While a dip in oil prices is generally good for the economy, there are reasons to think the effects are not all positive.

Falling oil prices don’t always translate into falling gasoline prices, at least not quickly. A line of economic research has shown that while prices at the pump rise rapidly when oil spikes, the opposite just isn’t true.

More generally, the fact that the US is now the world’s leading oil producer means that the fall-off in price will affect a major industry here at home, possibly leading to job cuts and a slowdown in oil-related investment. The type of oil we have in the US is very expensive to extract — so expensive that it’s only worth doing when oil is costly. Should prices remain low, the industry might not be sustainable, which could have a baleful impact on places like North Dakota and Oklahoma.

What does it mean for other countries?

Oil-rich countries around the world depend on oil revenues to balance their budgets and pay for basic government programs. In many cases, the oil companies are actually nationalized, meaning they’re owned by the state. So when profits at these companies are down, it’s the government that ends up short on money.

Currently, Russia, Venezuela, Iran, and Nigeria seem to be in an especially dire position, liable to face big budget problems if oil doesn’t bounce back to the $100 per barrel range.

Will low oil prices speed climate change?

They certainly won’t help. When gasoline is expensive, it gives people a reason to bike, rather than drive, just as it gives countries a reason to invest in clean technology. There’s already some evidence that SUVs are making a comeback. And observers have started to worry about how oil prices may affect the global climate agreement currently being negotiated in Peru.

Are there any surprising benefits?
A political science researcher at the University of Denver has found that oil-dependent nations tend to be less aggressive when oil is cheap. Higher prices feed their coffers, giving them more money to spend on the military, more international clout, and also more reason to want to annex nearby oil-rich territory. By contrast, low-prices have a humbling effect, making oil-dependent states more reliant on the good will of the international community and thus more peaceful.

What happens next?

From a policy perspective, now is actually a good time to raise the US gas tax. With oil prices having fallen so rapidly, it’s possible to increase the gas tax, put that money towards fixing our country’s troubled infrastructure, and still keep gasoline prices extremely low.

Given the realities of Washington politics, this doesn’t seem likely. But predicting gridlock in Congress is easy. Predicting the future price of oil is hard. A new bout of unrest in the Middle East could cause a spike, as could faster-than-expected economic growth in China or India. Then again, with renewable sources like wind and solar energy growing cheaper every day, demand for oil may be sliding permanently downward.

For now, perhaps it’s best to enjoy the extra pocket money and watch for the possibility of a real Christmas miracle: A $2 gallon of gasoline.

http://www.bostonglobe.com/business/...TqJ/story.html

[ford man xf]

And it's still hard to believe that the US is now the worlds largest oil producer. I can remember George Bush Jnr. wanting to reduce oil demand from the middle east, looks like this is now a possibility. It's interesting to note that once the oil dries up in the middle east it will be a fogotten wasteland and sand and desert with no foreign interest, Dubai is the only exception.

[LG17]

Originally Posted by mik

Yeah but spare a thought for us poor city dwellers , all that cheaper fuel we get soon goes up in smoke sitting in traffic jams and railway gates on the way to getting our latte`s , and anyway you country bumkins( i mean folk) get cheaper rego dont you ???

Cheaper rego?
The man's a comedian!

[GCRXR6]

Originally Posted by ford man xf

And it's still hard to believe that the US is now the worlds largest oil producer. I can remember George Bush Jnr. wanting to reduce oil demand from the middle east, looks like this is now a possibility. It's interesting to note that once the oil dries up in the middle east it will be a fogotten wasteland and sand and desert with no foreign interest, Dubai is the only exception.

Yes, very interesting thought.

Who of you realise that a Director and shareholder of an Australian gold mine was responsible for finding oil in the middle east? I worked in that mine, and still live in the town.

I smile at the thought of the wells drying up. None of those riches ever benefitted Australia.

[mik]

Was in my local servo (Caltex) tonight , he said the price was going down to $ 1.18 pl today for unleaded, then after Xmas it's going back up, he didn't say how much it was going up.......... enjoy it while it lasts boys and girls.

[Bossxr8]

Why, when the price of a barrel of oil has dropped even further to $55?

We are being ripped hardcore.

[Focusfan]

Originally Posted by Bossxr8

Why, when the price of a barrel of oil has dropped even further to $55?

We are being ripped hardcore.

On the news this week, the ACCC has been given more power to investigate servo's over charging.
HAHAHA. We will see how much they do. Should take bets that by the time they do all their investigating that the prices will be correct.
Will take them 2 months just to start. What a joke.

[Dauphin]

Originally Posted by LG17

Cheaper rego?
The man's a comedian!

I found out this week that a friend of mine who lives 50 kms from Melbourne pays about $100 less for their rego than I do (only 13 kms from Melbourne).

[uniacidz]

Originally Posted by Focusfan

On the news this week, the ACCC has been given more power to investigate servo's over charging.
HAHAHA. We will see how much they do. Should take bets that by the time they do all their investigating that the prices will be correct.
Will take them 2 months just to start. What a joke.

Agree

Currently in Sydney seen unleaded 91 for $1.13 a litre while central coast are forking out $1.49 etc.

Makes no sense and pure price gauging






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[rex351]

Anyone on here work in the fuel game?

[chevypower]

The funny thing is Republicans have been saying all along the fracking would add to the global supply and bring prices down, whereas Democrats argued that any increase in supply in America wouldn't be enough to change world prices. I'm glad they were wrong. It's more than just supply and demand though, now we have competition against the OPEC cartel. That's where the real price drop comes from, and then oil investors selling stocks etc.

[damo6]

Originally Posted by neptune blue

The oil companies and government are laughing laughing at all of us.

the supermarkets are having the biggest laugh.no decent (read:realistic) price fall will happen as long as they are in the game rubbing their price manipulating hands together.

[LG17]

Originally Posted by Dauphin

I found out this week that a friend of mine who lives 50 kms from Melbourne pays about $100 less for their rego than I do (only 13 kms from Melbourne).

Sounds like Victoria is more on the ball regarding decentralisation than Queensland! But that wouldn't be hard...