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oil price
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Good for the consumer as takes the edge off prices. All the costs savings don't get passed on to the consumer so more profits for the corporations which in turn should improve dividends and help the pension funds ?
But if oil prices stay low I'll bet the government finally increase the level of fuel duty, something they have had to hold off for the last years due to the high prices, why would they want us to get the benefits when they could get their mits on our money.
Bit more curious why OPEC are letting the price drop so low. Two schools of thoughts this end, they have so much money a slight reduction in income doesn't mean anything to them and the very low oil prices are crippling Russia.
But if oil prices stay low I'll bet the government finally increase the level of fuel duty, something they have had to hold off for the last years due to the high prices, why would they want us to get the benefits when they could get their mits on our money.
Bit more curious why OPEC are letting the price drop so low. Two schools of thoughts this end, they have so much money a slight reduction in income doesn't mean anything to them and the very low oil prices are crippling Russia.
Quote by Gerty35
Good for the consumer as takes the edge off prices. All the costs savings don't get passed on to the consumer so more profits for the corporations which in turn should improve dividends and help the pension funds ?
But if oil prices stay low I'll bet the government finally increase the level of fuel duty, something they have had to hold off for the last years due to the high prices, why would they want us to get the benefits when they could get their mits on our money.
Bit more curious why OPEC are letting the price drop so low. Two schools of thoughts this end, they have so much money a slight reduction in income doesn't mean anything to them and the very low oil prices are crippling Russia.
From what I read, OPEC are following the market trend to preserve their position against the short price. If they were no to do, they could lose even more market share by trying to keep the price high.
I think the Ruskies are more worried about gas supplies right now...
Quote by deancannock
I love the fact petrol cheaper for me.....
But also aware, this means a reduction in tax revenue for central government, and that ,means they will tax something else to get that money back !!!
Dean, think the only reduction will be a slight drop in VAT revenues as the fuel duty element is fixed, which is why I reckon the fuel duty escalator will kick in at the next budget, if oil prices are low "we won't notice "
Quote by Gerty35
From what I read, OPEC are following the market trend to preserve their position against the short price. If they were no to do, they could lose even more market share by trying to keep the price high.
GnV, can you expand on this for the financially uneducated !
Basically, market forces. If someone else is selling your commodity at a lower price the market will undoubtedly go with the lower price rather than rather than buy higher against some misguided loyalty.
The Sheiks recognise this, so to avoid overstocking and maintain some cash throughput, they sell at at lower price too. Nothing sinister, just survival. If Lidl sell Champoo at £10 a bottle cheaper than Threshers, you'd go to Lidle, right?
Other thing we have to remember, is the end of oil reserves is in sight....without any new findings, I read less than 20 years. Because of this, a lot of money is being put into new technology and ways of running cars, other than petrol. So it is in the Arab Sheiks interest, to keep people wanting petrol driven cars, rather than any alternative !!! Once people start switching, then their cash cow is dead !!
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Quote by deancannock
Other thing we have to remember, is the end of oil reserves is in sight....without any new findings, I read less than 20 years. Because of this, a lot of money is being put into new technology and ways of running cars, other than petrol. So it is in the Arab Sheiks interest, to keep people wanting petrol driven cars, rather than any alternative !!! Once people start switching, then their cash cow is dead !!
