UK PETROL: £1.16-9 per litre
Out of context: Reply #63
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- jawks0
As someone a little bit involved with the oil business in Brazil and Russia, allow me to lay it out for you:
First of all, it's really simple - if you don't want to pay a certain amount of money for fuel, do not buy fuel. Supply and demand has nothing to do with what you pay at the pump. There is MUCH more supply of oil than it is demand today. Oil that will supply us for the next 300 years was discovered in Brazil alone last year. There is a surplus of 3 MILLION BARRELS a day right now in a market with decreasing demand in several key markets. Just a couple years ago there was only a 1.5 million barrel / day surplus. There are also some very large oil finds that will be coming online in next few years increasing supply in a waning or flat global market.
Whether OPEC or not OPEC, oil sells at market prices - in this case set by pure speculators. Investors turn away from traditional investments, because they don't want dollars. They want oil. And that's why you pay what you do at the pump.
The oil companies themselves have very little to do with what you pay in the end. Their adjustments equates to pocket change to the consumer. If you want to riot, blame speculators and your government's tax policies.
Personally - I'm just glad I can go in to work 30 minutes quicker than I did one year ago becuase there are much fewer people clogging up the roads.