Jump to content

Are petrol prices actually reducing in line with falling oil prices?


Recommended Posts

To a certain extent the oil price is being manipulated. OPEC are deliberately driving the price down to make US shale less economic. But the futures markets have also contributed to the fall because they see slow growth in demand and a move by Europe to really drive down fuel use in vehicles in the next 10 years through more efficient hybrid engines.

Link to comment
Share on other sites

manipulating markets is nothing new.it was done by the bush family and very well.

 

It wouldn't just be the markets though, OPEC operate what is for all intents and purposes a cartel. So they'd have to be nobbled as well if your crazy conspiracy theory is correct, that it's all a plan to offer a sweetener to the public.

 

The mad detail with your crazy plan, is that most people don't actually believe that the government controls oil prices. So it would be all this effort for a stealth sweetener, that'll have no bearing at all during the election:hihi:

 

I'm sorry, I've heard some rubbish in my time, but your little theory is right up there.

 

---------- Post added 12-12-2014 at 23:08 ----------

 

To a certain extent the oil price is being manipulated. OPEC are deliberately driving the price down to make US shale less economic. But the futures markets have also contributed to the fall because they see slow growth in demand and a move by Europe to really drive down fuel use in vehicles in the next 10 years through more efficient hybrid engines.

 

I agree, that it does looks like OPEC has driven down the price, I thought maybe to punish Russia, but your shale theory is credible. But, lets be clear, if OPEC is manipulating the price, they are doing so because they believe it to be in their own interests to do so.

Edited by JFKvsNixon
Link to comment
Share on other sites

 

I agree, that it does looks like OPEC has driven down the price, I thought maybe to punish Russia, but your shale theory is credible. But, lets be clear, if OPEC is manipulating the price, they are doing so because they believe it to be in their own interests to do so.

 

I thought OPEC included Russia. I think OPEC are not universally agreed on this strategy but they agreed in November not to cut production and shale was reported as the reason.

http://www.theguardian.com/business/2014/dec/07/oil-price-down-opec-american-shale

A divided Opec is now hoping that falling prices will be devastating for higher-cost US frackers, forcing them to shut down output and gradually bring balance to the wider oil markets. But according to Paul Stevens, oil expert at Chatham House, a similar strategy in the late 1980s did not encourage North Sea and other producers to halt production and the price continued to slide downwards.
Link to comment
Share on other sites

I thought OPEC included Russia. I think OPEC are not universally agreed on this strategy but they agreed in November not to cut production and shale was reported as the reason.

http://www.theguardian.com/business/2014/dec/07/oil-price-down-opec-american-shale

 

A quick google tell me that OPEC is made up of twelve members: Algeria, Angola, Ecuador, the Islamic Republic of Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

 

As I said, using a drop in price to attack the Shale industry does seem like reasonable explanation, but one thing is for sure, the lowering price of oil has ruined Russia's economy.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.