Crude Oil Prices..

[Slowpoke]

Hi everyone,

Just wondering if anyone noticed.. but the price of crude oil has pretty much fallen drastically compared to a few months ago when it was at $147 per barrel.. and we were paying between $1.55 to $1.65 p/litre of unleaded petrol..

But the price of crude oil is now at $104 per barrel.. but I notice the pumps are only at like $1.40 to $1.49(sometimes) p/litre for unleaded petrol.. I was kinda expecting it to fall into the $1.30's mark..

Any comments?

Cheers,

Bernard

[dan_the_man]

aussie $ has dropped man

[-Dukes-]

It would probably take a couple of months for it to go down that much.

After all we are in WA, the very end of the earth.

[Slowpoke]

aussie $ has dropped man

True.. i forgot to take that into factor

[drifitz]

I would have to agree with you....

I have been watching the price of oil since it hit its record high $147 P/B, and its only gone down since then. Funny enough, our petrol prices are still up there, like you pointed out.

I think the price of fuel has to fall more, it just cant stay this high for no apparent reason?

My best bet would be that oil companies are out there to empty our pockets while they can, and get away with it.

Oh by the way, oil is at $109 a barrel and I post this.....

There are 117.347765 Litres per barrel - so technically oil companies are buying it under $1 a litre, obviously there are government charges to be added ontop of that, but still we pay $1.40 ?

Its not right

[Topaz]

I thought it was the Yen having a good run, but its is the dollwaar. $1 buys only 90Y at the moment

[ix9]

It would probably take a couple of months for it to go down that much.

I'm pretty sure there is a direct correlation between the cost of a barrel vs. daily petrol price to a SMALL percentage.

Here's a fancy graph showing the lag between barrel price vs petrol price.

http://www.whatprice.co.uk/petrol-prices/petrol-oil.html

After all we are in WA, the very end of the earth.

Most major refineries are based on the west coast, ie. Kwinana. Distance shouldn't have anything to do with it anyway

[br3ndan]

Watch the singapore fuel market...

Within a few weeks perth will follow it.

Besides.. this is a skyline forum! who cares about price of fuel! just put it in!

[-Dukes-]

True, but where does the oil come from?

Most major refineries are based on the west coast, ie. Kwinana. Distance shouldn't have anything to do with it anyway

[Marco-R34GTT]

Well if you consider that approximately 60% of oil would come from the M.E (Saudi, Iraq, Iran, Oman, U.A.E, Dubai ect) and Africa (Egypt, Libya, Nigeria, Morrocco ect), it would be easier, in a logistical sense, to ship it to Australia's west coast than it would be to ship it to our east coast.

Edited September 6, 2008 by Marco-R34GTT

[Slowpoke]

Watch the singapore fuel market...

Within a few weeks perth will follow it.

Besides.. this is a skyline forum! who cares about price of fuel! just put it in!

Shhhhh I don't have a skyline now DO I?

nah, just curious as why the fuel prices are still quite high

[abd_33]

The price at the pumps has nothgin to do with the aussie dollar being cheap or expensive. There is currently a crude oil surplus in the world which means that a Litre should not exceed $1.20 max. The reason behind high prices is government taxes. Aussie and US governments charge like $0.90 tax per Litre and regardless of the barrel price of crude oil, the price at the pump will not go down unless greedy governments stop charging rediculous taxes.

There you have it....

[Marco-R34GTT]

The price at the pumps has nothgin to do with the aussie dollar being cheap or expensive. There is currently a crude oil surplus in the world which means that a Litre should not exceed $1.20 max. The reason behind high prices is government taxes. Aussie and US governments charge like $0.90 tax per Litre and regardless of the barrel price of crude oil, the price at the pump will not go down unless greedy governments stop charging rediculous taxes.

There you have it....

Well firstly, just saying that "Exchange rates having nothing to do with oil prices" is rubbish, we are a net importer of oil, most international oil purchases/exchanges are done in US dollars, hence therefore, if the AUD is stronger against the USD, then we achieve a higher buying power per dollar. It makes imports generally more affordable, fuel is no exception from this rule.

Secondly, we really don't get charged that much, ever been to Europe??? They were paying $2.00 a litre when we were paying $0.70... If anything, having too low taxes in the USA and Australia have made us extremely dependend on oil and hasn't forced us to become more energy efficient... We never had to be, now we do, and we aren't ready..

[KeeFy]

Well firstly, just saying that "Exchange rates having nothing to do with oil prices" is rubbish, we are a net importer of oil, most international oil purchases/exchanges are done in US dollars, hence therefore, if the AUD is stronger against the USD, then we achieve a higher buying power per dollar. It makes imports generally more affordable, fuel is no exception from this rule.

Secondly, we really don't get charged that much, ever been to Europe??? They were paying $2.00 a litre when we were paying $0.70... If anything, having too low taxes in the USA and Australia have made us extremely dependend on oil and hasn't forced us to become more energy efficient... We never had to be, now we do, and we aren't ready..

Agreed. Exchange rates does affect the prices. There are many other factors that are involved as well. Like the company's hedge and stuff.

[Stinky Rooster]

Well if you consider that approximately 60% of oil would come from the M.E (Saudi, Iraq, Iran, Oman, U.A.E, Dubai ect) and Africa (Egypt, Libya, Nigeria, Morrocco ect), it would be easier, in a logistical sense, to ship it to Australia's west coast than it would be to ship it to our east coast.

Nope - Australia produces about 60-70% of its own oil (which is actually a better grade of crude than most places) and the rest is imported via the singapore exchange (hence the effect of the exchange rate on petrol in australia) . The actual amount of M.E. oil in Oz is somewhere between nil and bugger all.

Oh, and WA only has 1 oil refinery - set to crack the crappest grade of crude there is, funnily enough.

[Marco-R34GTT]

That is impossible, the lion's share of our reserves are in the Bass Straight, and we've capped those as a national/strategic reserve...

Aside from NWS and Gibson Desert... Where else are we getting oil from???

[-Dukes-]

Even if we produced all our own oil, it wouldn't matter much.

For example: Gas, We produce gas, Yet South Australia gets WA gas cheaper than WA gets WA gas... how the f**k did they work that one out?

[changi]

I would have to agree with you....

I have been watching the price of oil since it hit its record high $147 P/B, and its only gone down since then. Funny enough, our petrol prices are still up there, like you pointed out.

I think the price of fuel has to fall more, it just cant stay this high for no apparent reason?

My best bet would be that oil companies are out there to empty our pockets while they can, and get away with it.

Oh by the way, oil is at $109 a barrel and I post this.....

There are 117.347765 Litres per barrel - so technically oil companies are buying it under $1 a litre, obviously there are government charges to be added ontop of that, but still we pay $1.40 ?

Its not right

there is not 117 litres of petrol in a batrrel of oil; once refining takes place that 117 litres is split into different products; ie petrol, oils, greases etc.