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Petrol To Hit £1 A Litre This Weekend

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http://db.riskwaters.com/public/showPage.html?page=295273

MOTORISTS ARE being warned petrol prices are now certain to pass £1 a litre over the next few days as Hurricane Katrina has wiped out many of the oil refineries on the US Gulf coast, reports the Guardian.

A possible increase in European petrol prices is signalled as US oil companies yesterday bought up 20 shiploads of European petrol and the wholesale price of petrol on the Rotterdam spot market soared to a record of $855 a tonne or more than $100 a barrel – climbing 20% in two days.

Prices yesterday stood at around 92p a litre for unleaded and 96p for diesel but the Petrol Retailers Association is predicting that will have risen at least another 10p by Monday.

Such comments also follow a speech by US president George W Bush in which he said residents would need to conserve energy as there is expected to be a shortage of petrol in the short-term while refineries are out of action.

http://news.xinhuanet.com/english/2005-09/...ent_3433985.htm

PARIS, Sept. 2 (Xinhuanet) -- The International Energy Agency (IEA)warned Friday that a gasoline supply crisis in the United States, if it should occur in the aftermath of Hurricane Katrina, would be likely to spread rapidly worldwide.

    The oil market in normal times "is very fluid across the Atlantic and when there is a crisis in the United States, prices rise on the US market and that leads to more oil companies selling in the United States than in Europe," said IEA's head Claude Mandil in an interview with French newspaper La Croix.

    "There is no doubt that if in the aftermath of Hurricane Katrina a gasoline crisis occurs it will spread very rapidly at the world level," he added.

    As to a possible use of strategic supplies of other member countries of the 26-member IEA, he said that the Paris-based agency would "carry out its mission, which is to make strategic supplies available to the market if the cut in supply is serious."

    "If there is a shortage of gasoline and domestic fuel, the strategic reserves being essentially in Europe, they will be drawn on -- but for the whole world," he said.

    According to US government data, Hurricane Katrina has shut down an estimated 90 percent of crude production and 79 percent of natural gas output in the Gulf of Mexico, which accounts for a quarter of the total US oil output.

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90% of oil production and 79% of gas production in the GOM has been cut.

THIS IS SERIOUS.

Firstly because of the direct loss of the crude oil and seccondly because the loss of the gas will feed through to higher oil consumption via power plants and industry switching fuels. (There will be some drawing down of hydro storages and running older coal plants flat out, but to a large extent it means switching to oil since with high prices for gas the alternatives have been pushed hard even before the storm).

So, that's realistically 2.5 to 3 million barrels per day of combined lost production and increased demand. The world just doesn't have the capacity to offset this for long. The emergency stocks can only be used once, and when they're gone...

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90% of oil production and 79% of gas production in the GOM has been cut.

THIS IS SERIOUS.

All I can say is.....

BEAUUUUUtTTTTTTTTTIFUL!!!

this is going to do wonders to the CPI/RPI.... up $30... is that not the equivalent of 0.75% increase in inflation?

Increased product transport costs (from fresh fruit and veg to bras and clothing)

Employee travel costs (raise in travel allowances perhaps?)

Production costs

Lets see what the next move is to IRs now... I bet Merv is panicking. so, when is the next inflation report due anyway?

AND, what do you think would happen now if the Chinese pulled out their strategic dollar reserve and pumped it into the euro/yen?

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All I can say is.....

BEAUUUUUtTTTTTTTTTIFUL!!!

this is going to do wonders to the CPI/RPI.... up $30... is that not the equivalent of 0.75% increase in inflation?

Increased product transport costs (from fresh fruit and veg to bras and clothing)

Employee travel costs (raise in travel allowances perhaps?)

Production costs

Lets see what the next move is to IRs now... I bet Merv is panicking.  so, when is the next inflation report due anyway?

AND, what do you think would happen now if the Chinese pulled out their strategic dollar reserve and pumped it into the euro/yen?

I would much rather oil to go up slowly, rather than a massive jump upwards (like now).

This is because the MPC will say, its a blip, and the high figures will be gone 1 year down the line (hence, won't increase interest rates) - as all the manufactures would anticpate the rise, and up their prices before the acutal increase to themselves.

When all the prices have been increased they will stay there and not come back down (ever). Meaning, in a year inflation will be back to normal - as I think oil prices will come back down after production starts in the gulf (1 year maybe?).

If the oil price were to rise constantly over 1 year, inflation would constantly go up for the year and last for a year after the increase - meaning the MPC can't call it a blip!

But I don't think we will ever see <$50 a barrel ever again.

:blink:

Edited by Jason

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Guest growl
Apparently it's already £1.03 a litre in N yorks.

http://www.housepricecrash.co.uk/forum/ind...showtopic=14914

Libitina. Was it you who asked me about the price of my oil(for heating). Just bought 500 litres that cost £199. I think you wanted me to ring up in a couple of weeks to check the price .

Well my husband reminded me that 500 litres cost £125 back in May and we were moaning at that. Now I believe prices were then around $40 a barrel of crude. So that might give an idea of how much it may cost in a few weeks.

Apologies if it wasn't you. Its the Avatar. There are two other similiar ones. Its like there is a weird looking family on this forum of red headed women with a bob haircut, and big googly eyes, and the dad is a bit scary looking. :blink:

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Warning folks about petrol shortgage by a certain time will push the price too. Fill up everything you can while its still cheap type of thing.

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As expected, petrol leaps over £1/litre in the Scottish Borders overnight. I just wonder how many of these retailers have actually taken delivery of fuel at higher wholesale prices since Katrina. Surely they are not cynically increasing prices on the back of the publicity merely because there are wholesale price increases in the pipeline...

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BERLIN (Reuters) - The head of the West's energy watchdog said in an interview on Saturday that Hurricane Katrina could spark a worldwide energy crisis if damage to U.S. refineries led to a big increase in U.S. purchases of European petrol.

"If the crisis affects oil products then it's a worldwide crisis. No one should think this will be limited to the United States," Claude Mandil, head of the Paris-based International Energy Agency (IEA) told German daily Die Welt.

"They are already buying gasoline in Europe. If the refineries are damaged, that will only increase. Then this will become a worldwide crisis very quickly."

Mandil told the paper that high oil prices represented a risk for global economic growth and urged consumers to alter their behavior to save more energy and limit the fallout.

Poor countries were bound to suffer most from a recent surge in energy prices, which has been aggravated by Katrina and the shortages it has caused, he said.

On Friday, the IEA launched a rescue plan to ease those shortages, saying its 26 members would release two million barrels per day of oil over a 30-day period.

U.S. gasoline prices have spiked by nearly a fifth over the past week, pushing up fuel prices around the world.

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As expected, petrol leaps over £1/litre in the Scottish Borders overnight.  I just wonder how many of these retailers have actually taken delivery of fuel at higher wholesale prices since Katrina.  Surely they are not cynically increasing prices on the back of the publicity merely because there are wholesale price increases in the pipeline...

The thing that does surprise me is how does one get a Scott to part with a £1 for anything.

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As expected, petrol leaps over £1/litre in the Scottish Borders overnight.  I just wonder how many of these retailers have actually taken delivery of fuel at higher wholesale prices since Katrina.  Surely they are not cynically increasing prices on the back of the publicity merely because there are wholesale price increases in the pipeline...

Totally agree. Saw petrol prices had jumped this morning and asked the bloke behind the counter when his last delivery was and he said WEDNESDAY!

Hmm, same stuff in same tank becomes 5p dearer overnight? Has Gordy stuck the tax up without telling us?

I'm starting to think that we are being manipulated into believing we are running out of the stuff well before we are, just to justify the high prices.

And it's in the governments interests (in the short term) to have high prices to fill in the black hole with a healthy increase in tax receipts.

While i agree peak oil is a reality i'm of the opinion it's nowhere near as bad as what's being suggested.

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What can you say?

This will be put down as a freak of nature and something that came out of the blue, but think if the central bankers hadn't been pumping more money into the system (almost worldwide) to err create "growth" then an oil shock like the one that seems to be coming wouldn;t be nearly as bad.

We are being lead down the road to a financiial place that requires absolutely everything to go right, in the real world you know that just isn't the way things work. The bankers are guiltly of short term thinking and lack of forward planning as those now struggling with the aftermath of Katrina.

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The thing that does surprise me is how does one get a Scott to part with a £1 for anything.

I'm English to the core, from Bournemouth actually, but must have some Scottish blood in there somewhere. Saw prices at 97.9 in Galashiels on Wednesday, drove 3 miles back to where I live in Melrose and filled up at 93.9. I think I'll cycle to work for the next month and gloat over my stationary car...

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Apparently it's already £1.03 a litre in N yorks.

http://www.housepricecrash.co.uk/forum/ind...showtopic=14914

Just an observation, but has anyone else noticed how many petrol stations/pumps are not equiped to record/show prices over 99.9p a litre?

Most LCD displays and even the older numbered reel format only allow recordings of two numbers and two further numbers after the decimal point. This is even true of the big road side advertising board displays before you drive into the garage.

The cost involved in replacing these boards/pumps I can assume would be astronomical and probably beyond the reach of alot of the small independants.

So in my opinion they can either reach reach a peak of 99.9p and remain static because the price and time frame of replacing the equipment can not be met.

They could start pricing per half litre? Which would sent prices even higher!

They could replace the equipment but prices will remain high to pay for the alterations.

Next time your out filling up your car take a closer look.

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The thing that does surprise me is how does one get a Scott to part with a £1 for anything.

Very funny Dicky. I'm assuming you meant "Scot" and not just anyone called "Scott".

Let's have less of this infantile Scot-bashing.

Scots routinely give more per head than those in England in charity fundraising, like Children in Need, Comic Relief, the asian tsunami etc. And we also contribute to so called "national" charities which really only serve England and Wales, yet have the cheek to collect in Scotland while bleating on that we "have our own Scottish equivalents".

We also subsidise the south east and particularly London, through taxation since the majority of major employers are head-quartered in the south east (even those nominally Scottish companies that were taken over and their head-quarters removed to England). This results in much of our income tax payments 'originating' in the south east and artificially inflating their contribution to the economy. This is the case with my employer at the moment.

Petrol is often far more expensive in Scotland even where the oil is landed and refined here. There seems to be no correlation between the pump price and the distance to deliver that fuel.

Finally, your avatar is one of the most annoying on HPC. I like the Simpsons but I find that stupid grin really irritating.

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I went to fill up my car this morning because I'm low on petrol rather than being desperate to save a couple of quid on a tank of petrol and the pumps were already empty. I didn't bother trying another station as I'll do it tomorrow instead but it never fails to amaze me how tight people are! I've never seen that station run dry in the 4 years I've been using it.

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ha ha ha car owners owned!

It makes me laugh fit to burst watching all the idiots who watch Formula One unable to keep their pollution-mobiles going!!

i hate car-owners, i hate talking about cars and i hate cars. People who talk about cars all the time should be exterminated.

Edited by Withnail

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Very funny Dicky.  I'm assuming you meant "Scot" and not just anyone called "Scott".

Let's have less of this infantile Scot-bashing.

Scots routinely give more per head than those in England in charity fundraising, like Children in Need, Comic Relief, the asian tsunami etc.  And we also contribute to so called "national" charities which really only serve England and Wales, yet have the cheek to collect in Scotland while bleating on that we "have our own Scottish equivalents".

We also subsidise the south east and particularly London, through taxation since the majority of major employers are head-quartered in the south east (even those nominally Scottish companies that were taken over and their head-quarters removed to England).  This results in much of our income tax payments 'originating' in the south east and artificially inflating their contribution to the economy.  This is the case with my employer at the moment.

Petrol is often far more expensive in Scotland even where the oil is landed and refined here.  There seems to be no correlation between the pump price and the distance to deliver that fuel.

Finally, your avatar is one of the most annoying on HPC.  I like the Simpsons but I find that stupid grin really irritating.

Most of the scotish people i know actually pride themselves on being stingy - let me rephrase that since we have to be so PC these days....

Most of the scotish people i know actually pride themselves on being very careful with their money, and will only part with it when there is good reason to.

Just the other day at work i was speaking to a scot (we can say scot can't we? or is it a 'person of scotish origin') about his split from his wife, when we got round to talking about money being divided he winked at me and said "dont worry im scotish" implying that he would not part with a single penny without a fight.

Its ok for a scot to say it about themselves but its not ok for someone else to say it.

Scot-bashing , american-bashing, blue eye-bashing, everyones a racist, everyones a bigot, everyones a blah blah f*ckin blah.

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ha ha ha car owners owned!

It makes me laugh fit to burst watching all the idiots who watch Formula One unable to keep their pollution-mobiles going!!

i hate car-owners, i hate talking about cars and i hate cars. People who talk about cars all the time should be exterminated.

Go take a hike!!

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Buses and trains will also be effected by higher fuel costs. I'm all for cycling and am an avid mtb'er but this is impractical if you have a small family to take to places with very patchy public transport or if you live quite far from work.

It's easy to live in a city where you have good (ish) public transport and bang on about not using a car!

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lol. How about a bike ride? Efficient, healthy and non-polluting.

I seen a report on the brainbox a few weeks back about riding to work and it was clear beyond all doubt that any health benifits you get from riding a bike were serverly outwieghed by the toxins and CO2 that you breath it from trafic fumes.

Obviously was in a city centre - london in this case, but to make sure i'm not offending londoners i will say its more than likely the same in other citys across the uk - not that im singling out uk, or uk-bashing bashing in anyway, im sure its like that in all major cities of the world - not that im city-bashing either there are alot of positives to city life and health benifits i.e access to gyms - not that im suburb bashing or discriminating against any place which dosnt have a gym.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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