Oil Spike

[Culpability Brown]

Oil has jumped back above $50 a barrel and now resides at $54.60.

So no let up on the inflation front and additional pressure on the BOE not to meddle with interest rates.

There's not much room for a rate reduction and no respite for cash strapped indebted consumers.

[The Axiomatic]

Oil has jumped back above $50 a barrel and now resides at $54.60.

So no let up on the inflation front and additional pressure on the BOE not to meddle with interest rates.

There's not much room for a rate reduction and no respite for cash strapped indebted consumers.

<{POST_SNAPBACK}>

Also, £ has fallen against $ recently and most globally traded commodities are denominated in $, making such imports more expensive - adding to inflationary pressure.

[OnlyMe]

Oil has jumped back above $50 a barrel and now resides at $54.60.

So no let up on the inflation front and additional pressure on the BOE not to meddle with interest rates.

There's not much room for a rate reduction and no respite for cash strapped indebted consumers.

<{POST_SNAPBACK}>

The difference being now is that oil is rising whilst the dollar is rising too, in £ terms maybe the price has already hit a new high.

I read this article from ABC the other day, now seems to have gone subscription only, basically it said that we are only spending something like 10-20% of the money on research in alternative forms of energy.

Is this country in for a shock in a few years time.

"UK energy R&D slump threatens green technology push "

http://news.google.co.uk/news?hl=en&lr=&ie...6D+energy+slump

[Dicky]

Oil has jumped back above $50 a barrel and now resides at $54.60.

So no let up on the inflation front and additional pressure on the BOE not to meddle with interest rates.

There's not much room for a rate reduction and no respite for cash strapped indebted consumers.

<{POST_SNAPBACK}>

This is very worring for two reasons, the last time oil hit $55, the quid was 1.95 againts the dollar, its now 1.81, so the prices we've seeing at the pumps today were priced in at $48 and 1.92 roughly, expect to see the 91p litre quite soon.

Breaks down like this on 85p a litre.

Refinery 22.21p

Filling St 6.20p

Duty 43.99p

Total 72.40p

Vat 17.5% 12.67p

Now if the raw material cost into the refinery rises by 25% that adds 5p to a gallon.

[FTBagain]

Guess what caused the first two HPC's on the famous graph on the home page of this site.

Yup! Oil prices. Although the second HPC in 1979 was triggered by an oil price of about $80 per barrel in todays' money.

[mbga9pgf]

lets hope OPEC turn off the pups then!!!

[messychopper]

lets hope OPEC turn off the pups then!!!

<{POST_SNAPBACK}>

You don't want that!

It would unleash a very nasty monster

[DoubleBubbleTrouble]

Guess what caused the first two HPC's on the famous graph on the home page of this site.

Yup! Oil prices.    Although the second HPC in 1979 was triggered by an oil price of about $80 per barrel in todays' money.

<{POST_SNAPBACK}>

Anyone know what the $ to £ exchange rate was back then?

[DoubleBubbleTrouble]

Answered my own question, the average rate over '79 was $2.11485 to the pound

So in '79 it was £37.91 a barrel (inflation adjusted of course).

Today it's £30.16.

If the pound slipped to $1.44 that would break it. Alternatively if the rates stayed the same and oil went to $68.61 a barrel it would break the record too.

Edited June 1, 2005 by DoubleBubbleTrouble

[simon99]

Oil will fall back again like it always does. Everytime it hits $50 we hear how it will reach $60 , $100 , and everytime it falls back just as fast as it rose.

[Van]

Oil will fall back again like it always does. Everytime it hits $50 we hear how it will reach $60 , $100 , and everytime it falls back just as fast as it rose.

<{POST_SNAPBACK}>

Nothing goes up in a straight line. What we should look for is higher peaks with each rally and higher lows when each period of profit taking is over. This indicates that the bulls are still becoming increasingly strong in relation to the bears and that prices should continue to go up. The pattern of price rises and falls has been consistent with this, so far. The immediate price target should be a new high above the earlier peak of $58 this year.

Edited June 2, 2005 by Van