Yet More Misery for the motorist

[Hom3r]

Well Oil has gone over $100 a barrel. It won't be long before we'll be paying £1.20 a litre.

And the oil producers will NOT be supplying more.

I remember people saying that the gulf war was over oil, well if thats the case why hasn't it gone down

http://news.bbc.co.uk/1/hi/business/7168664.stm

http://news.sky.com/skynews/article/...299061,00.html

[bm1980]

Shell unleaded £1.01 a litre
Shell optimax £1.15 a litre

SHOCKING

[Derek]

Originally Posted by Hom3r

I remember people saying that the gulf war was over oil, well if thats the case why hasn't it gone down

A whole variety of reasons, I think Iraq is still producing lessthan it did before it was used as target practise by us and the Americans. Plus global consumption keeps growing and growing.

[punky]

Can anyone explain why even oil is traded in US dollars, that as we get more dollars to the pound lately, the price we pay at the pump goes up? Is it the oil companies inflating the UK prices to include the difference?

[Hugh]

Opec has increased production - it's mainly due to futures speculation in oil. BBC
"It recently bowed to pressure to pump more oil, agreeing to raise its production quotas by 500,000 barrels a day from 1 November.

Reports suggest the move was forced through by Saudi Arabia and that few other Opec members either have much stomach for increasing output or much capacity to spare.
Opec has said the market is "very well supplied" with crude and will continue to be so in the immediate future. It has blamed speculation by market traders - who can make money by betting on the future direction of prices - for the continuing price rises. "

[WHISTLED]

Can anyone explain why even oil is traded in US dollars, that as we get more dollars to the pound lately, the price we pay in oil goes up? Is it the oil companies inflating the UK prices to include the difference

Sadam started selling oil in euros, look what happened there! The whole american economy is based on oil being traded in dollars.

Its their unlimited overdraft...

[Russ]

And for those who travel down this way, the Severn Bridge toll charge is going up 20p for cars, despite the fact it's already paid for itself.

[Cobbydaler]

I think it's also to do with a shortage of refining capacity.

From an (admittedly old) BBC web page:

Low refinery capacity would at first suggest that oil prices should fall. After all, if there is no more space at refineries there will be surplus oil on the market waiting to be refined. So logically crude oil prices should fall.
But the oil market has no real mechanisms to make this happen.
It only has crude prices at one end and pump prices at the other to regulate demand.
As a result if refinery capacity is limited the price of crude will rise, as an incentive to reduce demand. The idea being that high pump prices kill demand for petrol, in turn lowering the price of crude.

[Hugh]

Good BBC link, with history of oil price surges here

[Tricky]

Just filled up at Tescos tonight £60.00 to fill a 3-series!
cannot afford to drive to work at this rate

[Hom3r]

I just spent £47 to fill up, and I still had 100 miles to go on the tank.

[Graham M]

Just spent £28 on filling up, that much gets me about 250 miles around town and 360 on a run

[WHISTLED]

Could be worse, could be on the trains!

And for those who travel down this way, the Severn Bridge toll charge is going up 20p for cars, despite the fact it's already paid for itself.

I didint know they dont take cards... stupid bridge!

[Mick]

The U.S uses up the most oil, yet seems to be still the cheapest to buy - and these days China uses up more oil than can be produced it seems. So everyone else suffers and not just at the pumps, as companies struggle to cope with the increase in costs for fuel, inflation stays up so most prices for everything else gets put up.

[Xaccers]

Eeep, best check how much tescos are charging for their corn oil then