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$100 Oil Breached Today! Way-Hay

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http://uk.finance.yahoo.com/news/Oil-hits-100-barrel-Suez-tele-3354410872.html?x=0

Reuters, 17:22, Monday 31 January 2011
Brent crude rose above $100 a barrel for the first time in 28 months on growing worries that protest in Egypt could disrupt oil shipments through the Suez Canal.
Brench mark crude oil for one month delivery rose to $100.25 a barrel in late afternoon trading in London, after hitting $99.97 during trading in the Far East.

Wot, no snow forcing up prices? :lol:

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Sky news just said "Oil traders are concerned about the contagion effect"

Not oil traders have seen a way to get their hands on some free money creating panic. Only 2% of world demand goes through Egypt.

In the oil biz--any excuse will fly.

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Sky news just said "Oil traders are concerned about the contagion effect"

Not oil traders have seen a way to get their hands on some free money creating panic. Only 2% of world demand goes through Egypt.

I thought it was more like 5%.

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Unleaded will be 1.32 p in the morning as a result of this. :(

Looks like you Deflationists are having your heads handed to you.

You included RB...

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Unleaded will be 1.32 p in the morning as a result of this. :(

Speaking personally, I've really cut down on driving and going out - still got gas in my tank from Xmas eve. Spoke to a friend who cancelled a 170 mile round trip as petrol's too pricey.....last time she said that was in summer 2008.

Still, at least we know where all that QE cash has leaked; Clue, not wages!

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Unleaded will be 1.32 p in the morning as a result of this. :(

More deflation eh? Expect even more deflation soon when petrol is £2.60 we'll have 100% deflation of petrol right?

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Looks like you Deflationists are having your heads handed to you.

You included RB...

Deflation Japan style will be the ultimate outcome for the UK. Anyone see much in the way of inflation wage wise? Oh, apart from banksters.

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Deflation Japan style will be the ultimate outcome for the UK.

:lol:

Anyone see much in the way of inflation wage wise? Oh, apart from banksters.

exactly.

a hand full of oligarchs buy up all the resources using freshly printed cash, while joe 6 pack watches helplessly from the sidelines.

they managed to price most people out of houses for the last 10 years. now they'll do the same for loaves of bread.

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I trade oil. Crude.

The call is $130 bbl

I filled up my heating oil tanks 2 weeks ago at $97 bbl

The price cam off 2 days later to $95 then crawled back up and when I left the office tonight it was $100.97 bbl

In Aug 2002 my 2 tanks cost 15p litre heating oil. I filled up at 59.95p litre plus 5% VAT

In Aug 2002 it was £500 and lasted about 1 year depending on how cold winter became. Today to fill up is over £3000.

Use sparingly.

I'm just off to turn my heating off!

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Deflation Japan style will be the ultimate outcome for the UK.

If ONLY!

My Japanese friends in Japan actually aren't living bad lives.

Probably due to cultural reasons, they all have masses of money stashed away (KK has £135K stashed away and he's 37) rent cheaply and all own cars and motorbikes. They can also afford to drive their cars and motorbikes. None of them are working mega jobs almost all of them are credit controllers in various corporations.... compare and contrast to the people here at the bottom middle.

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If ONLY!

My Japanese friends in Japan actually aren't living bad lives.

Probably due to cultural reasons, they all have masses of money stashed away (KK has £135K stashed away and he's 37) rent cheaply and all own cars and motorbikes. They can also afford to drive their cars and motorbikes. None of them are working mega jobs almost all of them are credit controllers in various corporations.... compare and contrast to the people here at the bottom middle.

Yeah I agree, Japan has hardly fallen apart in revolution but in the UK things may get nasty if wage deflation continues along with inflation in unavoidable commodities. The sheeple at the bottom have been kept quiet with bread & circuses but that all stopped 2 years ago (well the bread did), so a prolonged period of asset deflation is coming as a major shock to this country.

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Deflation Japan style will be the ultimate outcome for the UK. Anyone see much in the way of inflation wage wise? Oh, apart from banksters.

We will have what happened in Argentina, Russia, Weimar Republic and Zimbabwe which was inflation caused by a devaluing currency and not caused by a wage cost push. Wages will lag behind inflation and will result in the cutting of living standards.

What did Mervyn King say a few days ago.....

Bank of England chief Mervyn King: standard of living to plunge at fastest rate since 1920s

Families will see their disposable income eaten up as they “pay the inevitable price” for the financial crisis, Mervyn King warned.

With wages failing to keep pace with rising inflation, workers’ take- home pay will end the year worth the same as in 2005 — the most prolonged fall in living standards for more than 80 years, he claimed.

Mr King issued the warning in a speech in Newcastle upon Tyne after official figures showed that gross domestic product fell by 0.5 per cent during the final three months last year. The Government blamed the unexpected reduction — the first since the third quarter of 2009 — on the freezing weather that paralysed much of the country last month.

But there were fears that the country was poised to slip back into recession, defined as two successive quarters of negative growth. Economists said the situation was “an absolute disaster”.

The economic gloom deepened this morning as figures showed that mortgage lending by the major banks dived to an 11-and-a-half-year low during December.

Net lending, which strips out redemptions and repayments, fell to £880 million during the month, the lowest level since June 1999, according to the British Bankers' Association.

Labour has accused ministers of jeopardising recovery by pushing ahead with public spending cuts too quickly.

Mr King said he was unable to offer any imminent hope of a rise in interest rates in coming months because of the poor economic outlook. Savers and “those who behaved prudently” would be among the biggest losers in the squeeze, he admitted.

Disposable household income has been hit by sharp increases in the cost of food, fuel and tax, coupled with restricted wage rises for most workers. Last year, take-home pay fell by about 12 per cent, official figures showed, and the trend was expected to continue in 2011.

The governor warned that the Bank “neither can, nor should try to, prevent the squeeze in living standards”.

He said that the economic figures were a reminder that the recovery will be “choppy”. However, he said the biggest threat facing the Bank’s Monetary Policy Committee, which sets interest rates, was rising inflation.

The Bank is expected to use interest rates to keep inflation below two per cent, but the governor said inflation could rise “to somewhere between four per cent and five per cent over the next few months”.

He claimed that rising inflation had been caused largely by increases in global oil and commodity prices, and tax rises such as the increase in VAT introduced at the beginning of the year, which the Bank was powerless to control.

“In 2011, real wages are likely to be no higher than they were in 2005,” he said. “One has to go back to the 1920s to find a time when real wages fell over a period of six years.

“The squeeze on living standards is the inevitable price to pay for the financial crisis and subsequent rebalancing of the world and UK economies.”

Mr King insisted that the Monetary Policy Committee could not have increased interest rates from their current record low level to tackle the rise in inflation.

“If the MPC had raised the Bank Rate significantly, inflation might well have started to fall back this year, but only because the recovery would have been slower, unemployment higher and average earnings rising even more slowly than now,” he said.

“The erosion of living standards would have been even greater. The idea that the MPC could have preserved living standards, by preventing the rise in inflation without also pushing down earnings growth further, is wishful thinking.”

He added: “Monetary policy cannot be based on wishful thinking. So, unpleasant though it is, the Monetary Policy Committee neither can, nor should try to, prevent the squeeze in living standards, half of which is coming in the form of higher prices and half in earnings rising at a rate lower than normal.”

“The Bank of England cannot prevent the squeeze on real take-home pay that so many families are now beginning to realise is the legacy of the banking crisis and the need to rebalance our economy.”

The comments represented one of the governor’s starkest warnings yet. His claim that the banking crisis was behind the ongoing squeeze on living standards comes at a sensitive time, as banks prepare to announce multi-million pound bonuses for their executives.

Mr King expressed sympathy for savers and highlighted the failure of lenders to pass on cuts in interest rates. “I sympathise completely with savers and those who behaved prudently now find themselves among the biggest losers from this crisis,” he said. “But a return to economic stability from our fragile condition will require careful and well-judged steps looking beyond the next few months.”

Addressing the problems of borrowers, he added: “Households and small businesses with little housing equity may be unable to borrow at all or are able to borrow only in the unsecured market – where rates are much higher than before the crisis.”

Full article and video at http://www.telegraph.co.uk/finance/economics/8282354/Bank-of-England-chief-Mervyn-King-standard-of-living-to-plunge-at-fastest-rate-since-1920s.html

Edited by Take Me Back To London!

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The contagion threat that traders are licking their lips over is if a major oil exporting country in the middle east gets these waves of protest and discontent. That could cause oil to really spike up.

Otherwise, all the time there are new drivers learning to drive in India/ China and they all want petrol for their cars too, along with central heating in winter and other energy uses people in West take for granted.

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Quite a big differential in prices between NYMEX-WTI and Brent at the moment

http://www.zerohedge.com/article/crude-oil-spikes-egyptian

One of them has got to be wrong

BTW The thing that is really spooking the markets is the thought that the unrest in the Arab world could spread to Saudi Arabia.

If that was to happen then things would get very bumpy very fast

Edited by stormymonday_2011

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I trade oil. Crude.

The call is $130 bbl

I filled up my heating oil tanks 2 weeks ago at $97 bbl

The price cam off 2 days later to $95 then crawled back up and when I left the office tonight it was $100.97 bbl

In Aug 2002 my 2 tanks cost 15p litre heating oil. I filled up at 59.95p litre plus 5% VAT

In Aug 2002 it was £500 and lasted about 1 year depending on how cold winter became. Today to fill up is over £3000.

Use sparingly.

I'm just off to turn my heating off!

Na, oil per barrel will trade this year between $150 and $200, and it will stay there.

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The contagion threat that traders are licking their lips over is if a major oil exporting country in the middle east gets these waves of protest and discontent. That could cause oil to really spike up.

Otherwise, all the time there are new drivers learning to drive in India/ China and they all want petrol for their cars too, along with central heating in winter and other energy uses people in West take for granted.

Iran may already be sending their "agents" into unstable ME countries to spark riots as an oil price booster. Watching street interviews last night and one Egyptian gentleman said he wanted Islamic Rule in his country--the other blokes standing near by gave him a dirty look and said they want democracy. I doubt the average Egyptian wants to see Islamofascism rule by Mullahs but they want a tatse of the good life their rulers have been enjoying for years--and a very good life it has been given all that wealth that has been generated by oil (maybe not in Egypt) but so little shared with the average dirt poor Arab in the street. I think this is what its all about.

They have woken up to the fact taht the US is not to blame for the fact they don't have a nice house to live in--its their elites who drug them with religious opiates to keep their eyes on the wicked West. It worked for awhile but maybe now it is time to see who is really to blame for their poverty.

We need to do the same and take to the streets against banksterism and other forms of eltisim that is depriving the majority of a home to live in. More so now that Mystic Merv has just dipped his snout in the trough for another £1.4million while the rest of us are in it together.

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Quite a big differential in prices between NYMEX-WTI and Brent at the moment

http://www.zerohedge.com/article/crude-oil-spikes-egyptian

One of them has got to be wrong

BTW The thing that is really spooking the markets is the thought that the unrest in the Arab world could spread to Saudi Arabia.

If that was to happen then things would get very bumpy very fast

WTI is a cleaner oil than Brent crude and thus in theory WTI should trade higher, however Brent accounts for two-thirds of the oil market.

I need to look into the situation further, but it seems this is being caused by the Chinese who are consuming more and more oil and are set-up to refine Brent crude.

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  • 312 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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