Oil Down To $35 per Barrel

[CSV_LS1]

http://www.news.com.au/business/stor...-31037,00.html

OIL prices fell for the second day running overnight after government data showed surging crude stockpiles amid sagging demand in the US, the biggest energy-consuming nation.
New York's main oil futures contract, light sweet crude for March, shed $US1.61 from its closing price on Tuesday to $US35.94 per barrel.

Brent North Sea crude for delivery in March fell 33 cents to $US44.28 a barrel in London.

The US Department of Energy (DoE) said in a report American crude stockpiles soared by 4.7 million barrels in the week ending February 6. That was higher than market expectations of a 3 million gain.

The report sparked choppy trading, with prices dropping and then recovering before falling again.

"With the refinery running rate coming down, its hard to make a case for the prices stabilising or rebounding any time soon because the demand is just not there in the United States," said John Kilduff of MF Global.

US reserves of gasoline declined by 2.6 million barrels, confounding expectations for a gain of 400,000 barrels.

Distillates inventories, which include heating fuel and diesel, sank by one million barrels. Analysts had penciled in a drop of 1.5 million barrels.

On Tuesday, prices also had been depressed amid lack of market confidence over a US plan to stabilise its rocky financial system.

Market players said the plan lacked details and may not be effective enough to contain the financial crisis.

Oil prices remain at weak levels after posting record highs above $US147 last July following fears of supply disruptions.

The International Energy Agency (IEA) overnight again cut its forecast for global oil demand this year, but warned about a future supply crunch because of current low investment levels.

The energy watchdog for industrialised nations forecast that global oil demand would measure 84.7 million barrels per day (bpd) on average in 2009 -- 570,000 bpd less than its last forecast made in January.

I feel so much better now that we are paying $1.28L :ticking:

[mrbaxr6t]

this is good news but our crude oil comes from singapore, kind of a different market.

[CSV_LS1]

As of yesterday oil was $38 in Singapore.

[Gas N Go]

It was the same 6 months ago and we were paying 1.10, drove past my servo this morning and it was 1.34 bastards. I think the fire has taken the heat off em so they bump it up without the media on their backs.

[escapin]

call me synical but when the u.s barrel price is dear we are affected by it but when it drops we aren't as we are using singapores oil

[vztrt]

Originally Posted by CSV_LS1

As of yesterday oil was $38 in Singapore.

It's $36 now.

http://www.google.com/hostednews/ap/...BB-tAD969POIG0

[Falcon Coupe]

And was what $150 at it's highest ?

Someone is making a fortune at our expense.

[LowEL2XR8]

Originally Posted by 97liberty

call me synical but when the u.s barrel price is dear we are affected by it but when it drops we aren't as we are using singapores oil

Thats exactly how I feel.

[fordomatic]

i'm starting to get so pis$ed off with these fuel rises for no reason. i use bp ultimate and up here it is 17cents per litre more than regular, i asked the bloke at the servo to get the owner to ring me and explain why but obviously never received the call

[Mr Hardware]

Someone is making a fortune at our expense.

Nope.
THESE PRICES ARE IN US DOLLARS
our dollar has gone from brilliant to awful in the same space of time oil price per barrel has gone from US$150 to US$38 thus negating the large bulk of the savings.
fordomatic, the servo owner has nothing to do with the price of the petrol. They are all controlled by BP and the price handed to the owner as a YOU WILL SELL IT FOR X

If you whingers really, actually cared about how much fuel costs you'd be on LPG.

[TS50]

its just wrong, these bastards are just plain ripping us off
they can use all the excuses in the world, but they are plain and simple ripping us off
But dont worry, you ask them, and they will come up with, wellthe dollar is all wrong, or some other lame excuse.
It simply isnt good enough

Not blaming the servo operators , its the big corporate compaies making the money
will love to see their end of year balance sheets

[Mr Hardware]

Yep TS50, don't let the facts get in the way of a good hard done by story.

[TS50]

Originally Posted by Mr Hardware

Yep TS50, don't let the facts get in the way of a good hard done by story.

Ohh, it sounds like you have been brainwashed by the oil companies
You look back a few years when oil was arounf $45 a barrel, and our dollar was worse than it is now, we were paying well under a dollar a litre then
Sorry, its the big compaines taking us for a ride

Where are all your facts my friend?

[fordomatic]

ok then why does BP ultimate in townville go from 11cents extra a litre to 17cents extra a litre in one and a half months????? mate i own a v8 i never said i cared about paying the extra i clearly stated i would like to know why the price is rising. i would be on LPG my blo@dy *** i would!

[TS50]

Originally Posted by fordomatic

ok then why does BP ultimate in townville go from 11cents extra a litre to 17cents extra a litre in one and a half months????? mate i own a v8 i never said i cared about paying the extra i clearly stated i would like to know why the price is rising. i would be on LPG my blo@dy *** i would!

I'm with you mate, I have 4 cars i use Ultimate in, almost 20cents a litre dearer here than unleaded
I probably consume 200lts of the stuff a week
thats an extra $40.00
Aswith you , it only used to be 11 or 12 cents different a litre
Dont get me wrong, I choose to drive performace vehicles, and accept that i will pay more for fuel, just dont like being ripped

[Mr Hardware]

http://www.wtrg.com/oil_graphs/oilprice1970.gif
http://www.oanda.com/convert/fxhistory
Lets take say late 2004 as a benchmark
~$40 a barrel, ~AUD$1=US.80c, ~95c/ltr.
Same as now, except what's happened? Oh thats right, the exchange rate is about 20% lower and the price of a litre is now about 20% higher.
There are the facts my friend. If you want to go and map what the exchange rate is and what the price of a barrel of oil is you can just about create a formula which will tell you what the price of a litre of petrol should be, and it turns out always pretty darn smack on. Trust me, i'm as big a sceptic as the rest of you, i just like to investigate the facts first before crying poor me.

all i hear is 'i accept the price i'm just really angry about it'

[escapin]

its not poor me lol its poor us.

shouldnt lpg be lower as well?

[TS50]

Lets go back to 2001 dollar was in the low 50 cent to a dollar
lot lower than now, oil was arounf the $30 a barrel
was paying arounf 80 c a litre
arnt they facts?

[vztrt]

Originally Posted by 97liberty

its not poor me lol its poor us.

shouldnt lpg be lower as well?

It was 52c at the BP servo today. So that will slowly nudge up like before.

[Mr Hardware]

arnt they facts?

Possibly, but i sure as hell wouldn't be liking to live on 2001 wages in 2009, and i'd guess the hard working guys at BP wouldn't like to be either.

shouldnt lpg be lower as well?

Lower than what? The saudi aramco price for this time of year is pretty normal, and with the aussie dollar being so weak it seems pretty right.

[TS50]

i respect your opinion, but beg to disagree

[Dr Smith]

I think our local wholesale terminal petrol price is pegged to the Singapore Nomgas, wholesale petrol price. Maybe it's time we look at a global average then one particular market's spot price.

[fordomatic]

what the hell lpg is 76cents here today

[TS50]

I dont use lpg, but if i remeber right, its over 80 cents a litre in Tassy

[Falcon Coupe]

Originally Posted by Mr Hardware

Lower than what? The saudi aramco price for this time of year is pretty normal, and with the aussie dollar being so weak it seems pretty right.

So US$150 to US$38 yet bowser price has dropped around a third and the dollar to almost half.
I reiterate, someone is making money at our expense.

[Mr Hardware]

saudi aramco price refers to LPG, and i was replying to an LPG question.
In a litre of petrol, about 56c in the dollar is fixed costs (excise, GST, refining costs, transport, servo margin etc) and the rest of it is the cost of the oil remember.
So when the oil price 'halves' effectively the oil cost component also halves. Rather than being a dollar of the cost of a litre of petrol, it is now only ~50c the cost of a litre of petrol. So petrol has only gone from ~$1.60 to ~$1.10, a third off, where as the price of oil to australians has effectively halved. But if you know what you're talking about, you'll notice that the savings are absolutely passed on.

[GT0132]

Ok , here's a spreadsheet showing the oil price in USD, AUD/USD FX rates and CPI indices for each quarter from March 2001.

If someone wants to slot in the retail price in AUD for each of those quarters it would be interesting to see if we are really being ripped off

IMO the CPI shouldn't come into it as that would already be reflected in the USD per barrel price. However I've included it in the model to satisfy the needs of those who think it should be included

Cheers

[burnz]

1 aus dollar = 1 sin dollar
we are even priced (someone is profiteering)

[mik]

Originally Posted by Falcon Coupe

So US$150 to US$38 yet bowser price has dropped around a third and the dollar to almost half.
I reiterate, someone is making money at our expense.

agreed.....

[Stefan]

Seems Mr Hardware is pretty much spot on.

I've tried to explain it to people but it seems easier just to blame the oil company or worse still the guy behind d the counter.