Taxi Driver Online

Oil prices have fallen below $50 a barrel for the first time since May 2005 amid fears of a recession and expectations that demand will drop.

US light sweet crude fell to $49.75, while London-traded Brent crude fell to $48.90 a barrel.

The price of oil is around two-thirds cheaper than in July, when it hit a record above $147 a barrel.

Diesel still £1.07.9 here in the Borders it should be around £0.85.9 by now

Diesel will not drop in price anymore, it's subsidising the low price of petrol.

£1.05.9 in gods country.

CC

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Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin

£1.01.9 at Safeway Edinburgh

according to the news,a barrel of oil is at it`s cheapest for 3 years.
At tesco still 107.9p. a litre.HHHMMMMMMMMMMMMM.

Tesco 106.9p
Morrisons 105.9p

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/

The £ is only worth around 75% of the value from a year ago so the price won't come down to the levels that some of you think it should be.

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Grandad,

The price of oil is scandalous.

What we should do is locate the person in Government who is best placed to answer the following Question "WHY HAVE PETROL PUMP PRICES NOT FALLEN, IN LINE WITH THE DECREASED COST OF OIL"? and then we should all email them with that question, or one similar and await their response.

Regards

JD

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Copyright notice © The contents of this post are copyright of JD and are not to be reproduced outside of TDO without written permission.

The pound is at it's weakest against the dollar for nearly 20 years.
In recent weeks it has lost 25% of it's value. Oil is traded in US dollars.
That makes the equivelant £ per barrell price that much more. We pay in pounds so we pay more to make up the difference.

$49 a few weeks back was around £25.
Today $49 is around £33.10 - £8.10 exta due to the low value of the pound.

That said, it doesn't explain the 15p gap between petrol and diesel.
The difference in taxation is about 2p so there appears to be some profiteering going on there.
I think the price of petrol is probably about right but diesel still needs to come down by 12 - 13p.

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http://wingsoverscotland.com/ http://www.newsnetscotland.com/

You will be searching for a long time JD. When was the last time you actually heard an MP answer a question that was asked? They will give you an answer but it won't be the answer to your question.

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Grandad,

i wonder what the realative production costs are for derv vs u/leaded

derv is a light oil made from oil

petrol is a spirit which surely costs more to produce?

yet petrol is 50P a gallon cheaper?

According to my registration document, diesel is "heavy oil".
Derv is not a fuel but an acronym for Diesel Powered Road Vehicle

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Grandad,

i know that but having a trucker for a dad i grew up calling it that, so derv it is

DERV is only "heavy oil" in road going terms, in terms of viscosity its a light oil, like 3-in-one even... crude oil is like tar

ive discovered that there is more petrol than DERV gotten from 1 barel of oil, though petrol is only obtained from light sweet crude...

Refiners pinched as gas price falls faster than oil

Crude oil prices tumbled below $50 Thursday for the first time since May 2005 as jobless claims hit a 16-year record and financial markets sank.
But oil refiners, the chief buyers of crude, aren't celebrating. Gasoline prices are falling even harder and faster, so U.S. refiners are losing money on every gallon of gasoline they sell. Light sweet crude plunged 7% to $49.62 a barrel. Wholesale gasoline in the Gulf: $40.74 a barrel.

Such topsy-turvy economics have happened on occasion for a few days. But the current pricing turnabout has lasted seven weeks and could persist a few more months, says Tom Kloza, chief oil analyst with the Oil Price Information Service.

"It's unprecedented," Kloza says. Although refiners offset their gasoline losses with profits on diesel fuel, "if your feedstock costs more than your marquee product, you've got a problem."

The average retail price of a gallon of regular gas fell 2.7 cents to $2.02 and OPIS expects it to dip below $2 Friday. Both crude oil and pump prices have plunged since July. But while crude is linked to a weak global energy market, wholesale gasoline has been hammered by a sharper drop in U.S. demand.

Don't start sending oil companies your extra pennies — yet. Many independent refiners notched healthy profits in the third quarter, largely because Hurricanes Ike and Gustav knocked out capacity and raised prices, and they're making lots of money on diesel. Diesel demand has soared worldwide on heavy consumption by European motorists and Asian power plants and factories. That's pushed diesel prices nearly $1 higher than gasoline vs. an average 30-cent spread.

But the global recession is dampening diesel demand just as refining capacity is growing. Next year, 2.5 million barrels a day of capacity is to be installed overseas, with the U.S. adding 250,000 barrels a day, says Credit Suisse analyst Mark Flannery.

That's sure to narrow fat diesel margins of $20 a barrel. Flannery predicts a shakeout in which small, inefficient refineries — and those that can't process cheaper, heavier crudes — shut down. Francisco Blanch, head of commodities research at Merrill Lynch, says at least 10% of U.S. refiners will close.

Shares of refiners such as No. 1 Valero, Tesoro and Western Refining have swooned 80% to 90% the past year. To make do, refiners are trimming gasoline production, but they can't just stop making the stuff. Every barrel of oil yields about 50% gasoline and 30% diesel and heating oil.

"None of us likes selling product at a loss, but you can't turn a refinery on and off" daily, says Mark Cox, senior vice president and treasurer of Western Refining. "Markets are extremely dynamic."

_________________
Think of how stupid the average person is, and realize half of them are stupider than that.
George Carlin