Funny isn't it USA oil price under $60 per barrel

Submitted: Thursday, Feb 16, 2006 at 06:48
ThreadID: 30821 Views:2011 Replies:7 FollowUps:19
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diesel not moving down in price here.
If the price of oil goes up in USA or they have a cold winter or any excuse at all we pay through the nose.
Are they having a go at us.
PLease explaaaaain

All the best
Eric
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Reply By: rob1 - Thursday, Feb 16, 2006 at 07:31

Thursday, Feb 16, 2006 at 07:31
I doubt that fuel prices will go down much, if at all. The fuel companies and government know we are used to paying high prices and they'll continue to bleed us dry. The trouble is, we aren't really prepared to do anything about it, we just accept it.

Rob
AnswerID: 155283

Follow Up By: Eric from Cape York Connections - Thursday, Feb 16, 2006 at 07:38

Thursday, Feb 16, 2006 at 07:38
That's rite but if it goes up $5 a barrel in the USA its up the next morning here and Wednesdays and Thursdays is the dearest days of the week.
I thought they weren't allowed to do that any more.

Its like the banks the interest rate goes up next morning we are paying extra if it comes down it takes about a month or so because of paper work.

All the best
Eric
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Follow Up By: Member - Reiner G (QLD) 4124 - Thursday, Feb 16, 2006 at 07:47

Thursday, Feb 16, 2006 at 07:47
I believe they are on a feeding frenzy knowing there is a fair bit of cash around due to high real estate prices and the baby boomers having worked hard and saved.
It doesn't matter where you look.....Banks, Petrol, Parts, Building materials they all loosing it and we keep paying.
They will get a shock when the next generation comes along with no money and with a don't care attitude.

Reiner
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Follow Up By: Eric from Cape York Connections - Thursday, Feb 16, 2006 at 07:58

Thursday, Feb 16, 2006 at 07:58
Have to disagree with building materials they haven't changed for a few years and tools have actually come down in price.
Real estate has also come down a fair bit but fuel that's another story.

All the best
Eric
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Follow Up By: Member - Reiner G (QLD) 4124 - Thursday, Feb 16, 2006 at 08:29

Thursday, Feb 16, 2006 at 08:29
Eric, steel and timber prices have more than doubled in the last few years. Tools are cheaper but only the rubish ones.
Real Estage has gone up heaps over the last 3 or 4 years and just lately came down a little bit.
All fees and services have gone trough the roof as well....... or is that just here in Brisbane?

cheers
Reiner
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Follow Up By: Eric from Cape York Connections - Thursday, Feb 16, 2006 at 08:42

Thursday, Feb 16, 2006 at 08:42
I beg to differ on the price of timber I have been a builder and worked for my self for 26 years and I have found the price very stable for about 3 years now.
My bench saw is about 10 year old now and is still a very similar price to replace now.

All the best
Eric
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FollowupID: 409245

Reply By: Member - Omaroo (NSW) - Thursday, Feb 16, 2006 at 07:41

Thursday, Feb 16, 2006 at 07:41
This really isn't fair. The oil companies/government cartel are having a laugh at all of us. I'm surprised that the trucking fraternity hasn't raised an absolute ruckus - but I suppose that they are simply able to pass their costs on where we aren't.

Double-whammy.

Is there some sort of explaination available.... even if full of untruths and double-talk from the oil industry? We have it so ingrained in our psyche that the price won't come down - even though it should and could - that we just play the little Aussie bleeder and roll over begging for more.

What a croc.
AnswerID: 155285

Follow Up By: Truckster (Vic) - Thursday, Feb 16, 2006 at 17:13

Thursday, Feb 16, 2006 at 17:13
" I'm surprised that the trucking fraternity hasn't raised an absolute ruckus "

I mentioned this before, its a large Tax write off, and other subsidies (sp)
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Follow Up By: rickwagupatrol - Thursday, Feb 16, 2006 at 20:42

Thursday, Feb 16, 2006 at 20:42
Truckster, the vast majority of us DO NOT pass on the extra cost in fuel that we pay, simply because if we did, we would be looking for work elsewhere. I paid $1.28.9cpl today for diesel here in Perth. Using around 250lts per day, well you do the math. Alot of us are still being paid rates that are more than 4 years old, and when we ask for a rate increase to offset at least some of the extra fuel cost we are told,,,,,if you dont like it, go somewhere else. If i charged what it really cost to run a truck, you would start really screaming.

rick.
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Follow Up By: Truckster (Vic) - Thursday, Feb 16, 2006 at 23:26

Thursday, Feb 16, 2006 at 23:26
Rick, take 20 valium. I never said that you did pass it on.

I drove the road for 8+ years myself, I know how it is, but was never stupid enough to buy my own truck! Let someone else suffer, and just get trip money or hourly.. :D
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Reply By: Member - David 0- Thursday, Feb 16, 2006 at 08:13

Thursday, Feb 16, 2006 at 08:13
I don't think oil prices will go down much. I think the oil companies and investors are very worried about the possibility that future demand in China can't be met at current production rates. That will continue to drive the price upwards. Doesn't answer your question about why oil companies keep charging high prices when oil price goes down. I think the answer is "because they can."
AnswerID: 155287

Reply By: Member - greg S (QLD) - Thursday, Feb 16, 2006 at 08:48

Thursday, Feb 16, 2006 at 08:48
Morning all,
I had the grumps one day about all this, and while I was paying for my fuel I asked the manager (very politely of course:( about the very quick price rise, and not so quick decline,and all he did was shrugged his shoulders and said that's what we get told to do. I drove down in the morning and came back the same afternoon and the difference was around 8 or 9 cents/ litre :((((((((
If everyone stopped using their vehicles and trucks etc for a wk or a month all they would do is send all our fuel over to china anyway. So unfortunately we are stuck with the high prices. A down side is that our tourism will probably suffer cause we have to pay more for everything else as the transport costs are higher, and we can't afford to go anywhere.
Time for another coffee!!
Greg
AnswerID: 155294

Follow Up By: Eric from Cape York Connections - Thursday, Feb 16, 2006 at 15:16

Thursday, Feb 16, 2006 at 15:16
Yes its amazing I fueled up yesterday if I would have done it today it would have cost me an extra $9.80
Now how do they justify that.
Oil actually came down last night per barrel.

All the best
Eric
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FollowupID: 409327

Follow Up By: Member - Landie - Friday, Feb 17, 2006 at 16:48

Friday, Feb 17, 2006 at 16:48
At the risk of sounding like I am defending the oil companies (which I'm not) - the price of oil coming down overnight is one part of the equation, they aren't going to reduce the price of petrol that quickly especially given they will have potential stockpiles of oil paid for at a higher price.

The US dollar cost of oil is only a pass through when it comes to the cost of fuel. The price of oil has gone up substantially and I doubt that will change anytime soon. What you should focus on is the refining margin the oil companies are making - that is where they make the money. This is the margin they make per barrel from turning it from oil to petrol. This has increased in recent times, then some would argue that for the investment they make in building refineries (read billions) that the return they made previously did not justify the investment.

This is a key argument in the price of petrol, because it is global refining capacity that is pushing the refiners margin higher. Refining capacity is tight - read they cannot meet demand, when this happens we all know what follows - higher prices.

As for the price of oil; X amount is produced on a daily basis and again, if it does not satisfy deman, the price goes up.

I think the arguments are complex and are not as simple as blaming the oil companies for the price of petrol.

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FollowupID: 409584

Reply By: Scubaroo - Thursday, Feb 16, 2006 at 08:57

Thursday, Feb 16, 2006 at 08:57
It's a crock that ULP can jump 12-14c overnight in Melbourne (went from 112.5 to 124.9 and higher in Melbourne yesterday, and there's been bigger jumps in the past), and then be "discounted" all week until the next pricing cycle - but diesel is a constant 130.9, seemingly never changing.

I reckon the slowly rising popularity of diesels will start to have an impact - but it might take a few years.

Is it still cheaper to manufacture diesel than ULP now that there's low sulpher requirements etc? Anyone know the quantities of diesel versus petrol sold in Australia? I reckon if all of the transport and marine industries' consumption was taken into account, it would be on a par with petrol consumption, if not higher.

If you can't beat 'em, own 'em - you could always buy oil stocks on the ASX! I still reckon owning bank shares is better than having a cent on deposit with them.
AnswerID: 155296

Follow Up By: rob1 - Thursday, Feb 16, 2006 at 11:39

Thursday, Feb 16, 2006 at 11:39
Diesel is more expensive than petrol because there is more involved in the refining process to make it low sulhpur. The next level for diesel sulphur content will be 50 ppm. The price will probably rise again then.
There was a good explanation in the NRMA Open Road magazine recently and I'll try and find it at home tonight.

Rob
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Follow Up By: Gu_Patrol - Thursday, Feb 16, 2006 at 18:09

Thursday, Feb 16, 2006 at 18:09
Just went past a BP sevo in Adelaide metro and it was 1.399 c/litre, some servos have Unleaded @ 1.119 a litre, Diesel should be a cheaper fuel to buy, it was many years ago
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FollowupID: 409372

Reply By: Feral - Thursday, Feb 16, 2006 at 12:08

Thursday, Feb 16, 2006 at 12:08
Sorry all....but why does every complaint about fuel ALWAYS degenerates to this, that and the other and why the sun don't shine!!!!

Why don't we get really angry and instead of whinging to this forum EMAIL your local member. They are all listed, do a google search and if you bombarded them they just might do something about it.

I'm getting tired of all the complaints about fuel, rego, speed camera's, government corruption etc, so get up and email your local member and tell him/her...

'YOUR JOB IS ON THE LINE IF YOU DO NOT DO ANYTHING ABOUT IT
AND I WILL VOTE YOU OUT OF OFFICE!!!!

Cheers,
Lyndon (..in need of a holiday )
Immaculate Discovery
AnswerID: 155337

Follow Up By: Alan H - Thursday, Feb 16, 2006 at 12:52

Thursday, Feb 16, 2006 at 12:52
Well said Feral. The oil companies make massive profits and all our governments have a good laugh and pocket massive taxes out of the price we pay.
But I bet come the next election they'll all be promising to do "something" about it and after they're back in office it'll be down graded to a "non core" promise and we can all go and get stuffed for a further 4 years or so.
They've tried protesting in the UK by boycotting refineries but it hasn't done them any good so why should we even bother trying?
I believe our price is taken from the Singapore spot price as well which is always around $US3 per barrel more and this puts our price up a bit more.
Alan.
(Also in need of a holiday again and with a dirty Defender)
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FollowupID: 409299

Follow Up By: The Bigfella - Thursday, Feb 16, 2006 at 15:15

Thursday, Feb 16, 2006 at 15:15
Agree, well said.
The problem is that E-Mails can be DELETED so easily.
But regardless of your political views NO government will EVER change things when they keep filling their long pockets with our money.
We do live in a great country and I am one of those "Baby Boomers" and I do believe the whole place will come down around our ears one day. Just have to hope it is not too soon.
I do not understand economics but the poor old tax payer will crumble one day and we will all suffer the consequences.
My view for the day.
The Bigfella
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Follow Up By: Eric from Cape York Connections - Thursday, Feb 16, 2006 at 15:19

Thursday, Feb 16, 2006 at 15:19
Why don't they base the price on a barrel in saudi Arabia that sounds better to me.

All the best
Eric
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FollowupID: 409328

Follow Up By: Member - Patrick (QLD) - Thursday, Feb 16, 2006 at 16:10

Thursday, Feb 16, 2006 at 16:10
From what I understand, our fuel prices are based on the Singapore price not the West Texas one. The ABC news each night quotes Singapore not USA, which is always about $3 more than the West Texas crude.

Cheers, Patrick

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Follow Up By: Tonbo - Thursday, Feb 16, 2006 at 19:58

Thursday, Feb 16, 2006 at 19:58
I work in west afica on oil rigs and to see the money that the oil companies spend on getting it out the ground would make you weep. If I only had a little of that to spend on my 4x4 !!
The service company I work for charge up to 20 thou US for a days work for a simple equipment package. Some other companies charge that an hour.If they can afford that it shows how much they are really making !!!!
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Follow Up By: old mate - Friday, Feb 17, 2006 at 10:05

Friday, Feb 17, 2006 at 10:05
If fuel prices dropped to a point where they should be, not where they are now, people would not have anything to whinge about and internet forums all over the world would go quiet. We all have chosen vehicles that consume more fuel than regular cars, we've all known about higher oil prices for the last couple of years, continue to modify them and load them to the hilt and make them heavier with accessories and then complain on fuel prices and go on and on foums about fuel economy.

It's amazing how many people bitch and moan about fuel going up a couple of cents a litre but have no problem buying smokes, grog. go out for dinner or take out a 2nd mortgage at their local 4x4 store for yet another latest and greatest accessory for their 4by.

We all know high fuel prices are here to stay and yet people are still buying 4WD's. You can write letters, no petrol day crap, whinge on forums, buy so called fuel saving devices etc. etc. If you choose to buy/continue to drive any vehicle that gives figures over 10L/100 km in this economic climate then it is time to get over it or sell it.

I work in the oil industry and don't expect it to get any better. By the way how many of you have investments in managed funds or a super fund? I bet you are benefitting from high oil prices in the way of divedends to you r super fund. If your fund does not invest in oil or gold futures, I'd be asking why.

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FollowupID: 409490

Follow Up By: Eric from Cape York Connections - Friday, Feb 17, 2006 at 15:35

Friday, Feb 17, 2006 at 15:35
Well you have totally missed the point if the fellow down the local super nmarket put the price up on Wednesdays to Sundays without reason.
Then based his prices on the North American winter for your food bill each week that would be fine.
And if you work in a refinery or similar you more than likely get 25% discount on your fuel bill or even more.
All the best
Eric
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FollowupID: 409569

Reply By: Member - Landie - Friday, Feb 17, 2006 at 16:51

Friday, Feb 17, 2006 at 16:51
At the risk of sounding like I am defending the oil companies (which I'm not) - the price of oil coming down overnight is one part of the equation, they aren't going to reduce the price of petrol that quickly especially given they will have potential stockpiles of oil paid for at a higher price.

The US dollar cost of oil is only a pass through when it comes to the cost of fuel. The price of oil has gone up substantially and I doubt that will change anytime soon. What you should focus on is the refining margin the oil companies are making - that is where they make the money. This is the margin they make per barrel from turning it from oil to petrol. This has increased in recent times, then some would argue that for the investment they make in building refineries (read billions) that the return they made previously did not justify the investment.

This is a key argument in the price of petrol, because it is global refining capacity that is pushing the refiners margin higher. Refining capacity is tight - read they cannot meet demand, when this happens we all know what follows - higher prices.

As for the price of oil; X amount is produced on a daily basis and again, if it does not satisfy deman, the price goes up.

I think the arguments are complex and are not as simple as blaming the oil companies for the price of petrol.
AnswerID: 155593

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