Friday, Oct 17, 2008
Petrol prices will fall – regardless of what Gordon Brown does
MoneyWeek: Petrol prices will fall – regardless of what Gordon Brown does
Petrol prices are falling because we're facing a massive recession - despite what Gordon Brown might try to say...
Posted by damien @ 11:04 AM (620 views) Add Comment
16 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. renting2 said...
But then everyone will think he's wonderful when they go to the Asda forecourt. As ever ............. spin.
2. holding out said...
He loves to claim credit for everything going in his favour whilst blaming bad news on someone else. Recession is bringing down the price of oil. If he wants to claim credit for that then for once I'll agree with him.
3. planning4acrash said...
If we get price controls, we get shortages. If prices fall naturally with the free market, then, well, govt have lost control of the derivative price control levers and are fighting for survival. The latter is our greatest hope, IMHO.
4. larry pickleman said...
I just got my old T2 VW back on the road after a month or so yesterday and nearly sh*t my pants when i went to fill it up and petrol was under a quid per litre...
5. p. doff said...
There is talk about OPEC cutting production to inflate prices. Some OPEC members are apparently losing money at $90/barrel.
Suck on that Gordon.
6. mrmickey said...
This must be bad news for the Arabs and Russians with their energy based economys going down the tubes, should have diversified when they had the chance. I suppose the next move is for a reduction in production to push prices up again.
7. denzil said...
Yep, Brown was doing so well until yesterday when he started making noises suggesting the fall in petrol prices were something to do with him. Patronising clown!
On a related matter, if ever there was a time that chasm that can be exploited by a lesser political party then that time is starting now.
Labour are doomed because the culture of debt was encouraged and ignored by Gordon Brown during his period of chancellor. If he denies this then it's easy to simply ask the question, "if you are so smart that you can devise methods to fix the woes of the banking sector then why were you not smart enough to see the problem building in the first place?"
As for the Conservatives, instead of providing leadership during the current problems they have simply vanished.
Lib Dems could massively increase their share of the vote by driving straight through the chasm between Labour and Conservatives. One big problem for them is that most people don't even know who the leader of the Lib Dems is.
8. timmy t said...
Renting2 - I think we should all be grateful to Gordo for personally ensuring that the price of petrol comes down. And don't forget he invented the internal combustion engine and the wheel too, so we should also thank him that we've got cars in the first place. Personally I have no doubt that he will soon invent the hover-board that runs on CO2 and will single-handedly save the planet. And they will all be made in the UK resulting in 100% employment...
9. planning4acrash said...
At least recession may it harder to institute carbon taxes.
10. Kruador said...
Crude oil prices are falling because those organizations which 'invested' in crude oil are having to pull their funds out to cover other losses on their balance sheet. As they do, the price falls, which puts other parts of the balance sheet underwater, and round and round it goes.
I said while the price was still going up that it wasn't based in reality and eventually some traders noticed - primarily through publication of US statistics that showed actual decreases in road miles driven - and started to sell. That started to put some holdings underwater and started off the whole spiral.
I think we're now starting to see this in the gold price as well and that will drop back to $300/ounce. Every 'investment' they try in order to recover is being blasted out of the water by the general downturn.
What I'm surprised at is just how sharp the crude oil price drop has been: many times faster than the rate it climbed. See https://www.theice.com/marketdata/brentCrudeFuturesView/brentIndexView.jsp for a graph. Dropped $5 yesterday (although this was close-of-monthly-contract day, so today's front price is now the November contract which was higher). We may be due another dead-cat-bounce.
11. Nocibomber said...
Prices won’t stay down for long. Israel is probably about to light the tinder box in the Middle East, that’ll make the credit crunch seem trivial.
12. Dr Ray said...
planning4acrash said...
At least recession may it harder to institute carbon taxes.
On the contrary: He knows that once the companies reduce petrol to 90p litre he can add 20p a litre in tax and the motorist will carry on paying.
13. planning4acrash said...
Oh dear! Problem is Dr Ray, that, I suspect that the fall in petrol prices will be down to manipulation like that in the gold market, so, you can get it down, but, with shortages, you'll be stuffed if Saudi can't afford oil rigs on less than $90/barrel, and any addtional tax will result in less revenue overall because of less people buying and the economy slowing down, plus, the whole oil industry shuts down, like the bullion manufacurers, when prices are suppressed below cost/profit margins.
14. planning4acrash said...
Yup, is been quiet on Iran. I personally don't think it'll happen. I think the neo-cons ran out of steam and false flag doesn't work anymore.
15. planning4acrash said...
Goodness Kruador, $300/ounce, you are bearish!! How could that be, when the mints have stopped minting because they can't get gold at the spot price?
16. planning4acrash said...
Dr Ray, we really need to spread info about the Global Warming Fraud:
Global Cooling: Alaskan Glaciers Grow For First Time In 250 Years
Lew Rockwell: The State and Climate