midlifecrisis
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Surprised no one has mentioned the recent outburst of imagination from the US and of course UK about Russia on the Ukrainian border. Now that Putin has started pulling back, apparently, the oil price has dropped.
Oil price - Temporary upwards blip OR the only way is up?
- Thread starter Motorsport3
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midlifecrisis
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Further to this, Germany short-sightedly turning off its nuclear power stations only increases it's demand for gas. Fukushima was a lame excuse. Many of its power stations were inland! So I call BS Mrs Merkel.
That’s what the Reuter’s link cited-see my earlier post
And even that nuggets is old news even as soon as it is published , it seems...
Today, reports are of Putin moving x number of 800 strong battalions back to the front...!
Phil H
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I'm sure that much of this involves the psychology of price conditioning; e.g. start at c£1.15/ltr in January 2021, hike it to c£1.55 in February 2022, then drop it to c£1.35 which becomes the new norm and Joe Public breathes a sigh of relief. It's a bonus for the oil companies when they have so many candidates to blame for price hikes, not the least of which is the green agenda.
CatmanV2
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Phil H
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So it is, but with the volumes sold it only takes a small percentage increase to cover a CEO's bonus and then some. Meanwhile, consumers have to suck it up and the treasury does a happy dance.
CatmanV2
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London_Paris
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Worked in the industry for 30 years…
As they say “the cure for low oil prices is low oil prices”. Post 2014 there has been a dramatic reduction in spending on exploration and production and it has taken until now for the economies of the world to absorb the excess production capacity created by nearly 12 years of heavy spending from 2002-2014.
There is no easy or quick way to increment production of oil or gas. It takes time and investment. Higher prices are here to stay for a least the next 5-10 years.
Most people don’t realize that there is less than 30 days of global oil supply in storage. Small disruptions can have outsized effects. Another fun fact is the wholesale profit on a liter of fuel is usually 2% or less. That‘s why they want you to buy you drinks and snacks at the gas station….its more profitable than the fuel.
A liter of unleaded wholesale is about 0.52 pound sterling based on yesterdays closing price in NY…90% of difference to the pump price is taxes.
As they say “the cure for low oil prices is low oil prices”. Post 2014 there has been a dramatic reduction in spending on exploration and production and it has taken until now for the economies of the world to absorb the excess production capacity created by nearly 12 years of heavy spending from 2002-2014.
There is no easy or quick way to increment production of oil or gas. It takes time and investment. Higher prices are here to stay for a least the next 5-10 years.
Most people don’t realize that there is less than 30 days of global oil supply in storage. Small disruptions can have outsized effects. Another fun fact is the wholesale profit on a liter of fuel is usually 2% or less. That‘s why they want you to buy you drinks and snacks at the gas station….its more profitable than the fuel.
A liter of unleaded wholesale is about 0.52 pound sterling based on yesterdays closing price in NY…90% of difference to the pump price is taxes.
Phil H
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Much depends on the forecourt operator, whether a single independent or part of a chain, but petrol figures are generally quoted from around 3p/ltr up to 19p/ltr with many sites at the lower end of the scale; the RAC has recently been quoting the latter figure though. However, UK consumption of road fuel for 2020 (which was suppressed due to Covid restrictions) was just under 13bn litres of petrol and over 25bn litres of diesel, and that's the significant bit when you're playing the numbers game.
But then, you knew that didn't you
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Froddy
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I think this is the level to watch:
Revised since my post on 9th April 2020:
https://www.sportsmaserati.com/index.php?threads/shares-to-watch.30339/post-763733
Revised since my post on 9th April 2020:
https://www.sportsmaserati.com/index.php?threads/shares-to-watch.30339/post-763733
Ryandoc
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The world is rushing head first into a serious headache by trying to turn off the hydrocarbon tap overnight.
200 odd years of evolution. From liquid fuels to the modern chemical building blocks such as ethylene, it’s oxides and derivatives.
Yes we need a way forward but my god we are going at this way way too fast. It will hurt.
We want to move around the planet and we want to hold material things in our hands. We need this in huge volumes. There’s pain coming unless someone adopts a sensible approach to it all.
200 odd years of evolution. From liquid fuels to the modern chemical building blocks such as ethylene, it’s oxides and derivatives.
Yes we need a way forward but my god we are going at this way way too fast. It will hurt.
We want to move around the planet and we want to hold material things in our hands. We need this in huge volumes. There’s pain coming unless someone adopts a sensible approach to it all.
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Phil H
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Tomorrow's press reports extensive 'greenwashing' by major oil companies who extensively make reference to climate change and efforts to combat it, whilst they are actually doing very little on that front and are instead relying on fossil fuels with little or no investment in clean energy.
Well, there's a surprise.
Well, there's a surprise.
Zep
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Good spot, I lost a couple of zeros as I was doing it while on a call. It’s 500,000,000 barrels. So 4 tankers a day for over capacity.
Zep
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Froddy
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There you go, chaps - came within 33 cents - maybe tomorrow the target will be hit??
CURRENCYCOM:OIL_CRUDE Chart Image by frodders
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