The rising price (and associated costs) of Oil / Petrol Discussion Thread.

[omn1potent]

[stiddy]

Hmm.. they way I see it, you don't buy an XR8/GT/GT-P because of fuel economy. Pay the damn fuel and enjoy the car. I don't get some people, yes fuel prices are going up, yes its a pain, yes its expensive, but theres nothing that we can do about it. I didnt buy my XR8 cause its fuel economical. Hell if it drops under 20L/100k's its not being driven properly LOL. You dont buy these cars and whinge about fuel prices.
Maybe you should sell your GT and get a Nissan Micra 1.4L 4cylinder that gets a billion ks for 30 bucks or worse.. a *gulp* hybrid.

[Grechie]

This is a joke

Alcohol and petrol up.

Ah well, if they put it to $2, there going to have a load of petrol runners on there hands...

Looks like theyll have to resort to turning off the bowsers and making everyone prepaying at all servos...

[sgt_doofey]

Originally Posted by PoMmYwOG

Why should we be charged more just cos the US are going on holidays,just cos they are gonna have to pay more for fuel why should we, why should it affect the other markets

You must have failed economics back at school. Simple supply and demand rules apply: http://en.wikipedia.org/wiki/Supply_and_demand
And even I struggled back in uni when I did economics.

do our markets affect anyone when we have holidays?

No. Our market isn't big enough. Compare the Australian population to that of the US. Now do you know why they affect our market?

[xe351]

Originally Posted by SeXC

or look at it this way.... if its too much, catch the bus.

its not always an option for some. Those in the bush are really going to feel it, and than higher food prices etc

[Bent8]

The price of crude is directly linked to the US dollar....

Every time the USD loses value, the oil price goes up accordingly.

More and more OPEC countries are trading oil with Euro's now, because the US dollar is pretty much finished as a world currency.

[Fordman1]

Peak Oil ??

[banarcus]

Wish my cars would run on water. Wouldn't upset all the rip off merchants.

[StealthAu]

So what's the purpose of this thread? Is it just for people to have a whinge?

[Bent8]

Originally Posted by Barraxr8

Peak Oil ??

No such thing my friend...it's a fraud!

Oil is everwhere on the planet, new discoveries are always being made...but by keeping certain oil wells capped, the price can be artifically inflated through supply and demand for maximum profit's.

Then the US Federal Reserve goes and injects billions into the stock market to keep it afloat which inturn devalue's the US dollar which inturn drive's crude oil price's up and which inturn drive's just about everthing else up!...phew (catches breath)

The main reaosn food prices are exploding is because diesel price's have gone through the roof and the truckie's are taking it on the chin!

Just remember, without the truckie's, our society would collapse within a matter of days!!

And this conclude's my little rant on world economics, good day to you!

[snappy]

manly to educate i thought . 2 great links in here
1. was lindsay williams the priest that was the chaplen on the oil rigs .basically said was told by a sacked oil company ceo tha is was imf , and the world bank that makes bigger profits than the oil companys . And when the erased all third world debt there plan is to use oil to pay the debt .also said tha in alaska the oil well there was classified and most likely the largest in the world. worth the watch
2. peak oil life after the oil crash
more of a doomsday thread about the cost of oil will cotinue to rise and push us and the usa in to poverty . scary

that fact is only 60% oil is used and sent to the bowsers the divided in to everything else food,medicine ,plastic,electronics everything is made from the energy supplied from oil .so we are stuffed if it continues to rise
i dont know what it is we can do if anything maybe direct the right questions to govement . power to the people.

[ea90gl]

hmm very interesting thread with lots of info, definately gives you an idea of whats going on. I have heard of two theories which for I know could be true or simply utter shite, these are

1. The US invaded Iraq to grab hold of the oil which now they have, since spending so much more than thought prices are being jacked to make up for mega losses

2. Oil companies know their time WILL come to an end, so they are milking it for all its worth in order to cash up as much as they can before they crash and burn

wether this be from some paranoid mob or it does have some sense of truth to it I obviously dont know, and since Im no oil expert I cant really comment but for the more informed out there what are your thoughts about this? As far fetched as the theories might seem, I wouldnt be suprised one bit to find real truth in both if not one at least

[YOOT]

Originally Posted by WAForce8

If oil goes up in U.S dollars and the Aussie Dollar goes up the same by the percentage. Then fuel here should remain the same but it doesn't.

ITS LIES ALL LIES I TELLS YA!

The Aussie dollar isn't going up, its just worth more against the US dollar because it is going down! Thats why there is no cohesion between barrels of oil and the Aussie dollar.

But while the ratio between the US and AUS dollar tips further into our favour then it buffers the rise in petrol prices, but it doesn't take car of it complety.

Just pray the US economy doesn't bounce back too soon or petrol prices are going to be dearer than coke.

If people want to blame someone for the rise in petrol/oil prices, blame the geologists, because they simply can not find more of the stuff. And when they do its harder and more expensive to get out.

Usually the when prices go up so does the supply, well this time there isn't any more supply, so prices have been raised to try and suck some oil out of the wood work but it isn't appearing...

[Fordman1]

Originally Posted by Bent8

No such thing my friend...it's a fraud!

I'm not convinced by your argument Bent8.

Oil IS a finite resource. It's a matter of "when" not "if" it will run out.

New large deposits aren't being found. The fields being tapped now are those found previously.

I'm no expert on the subject, but I do know that 99% of the worlds population depends on it, and that the world's population today is 2 times the size it was in 1955.

6.5 Billion now, 3.7 Billion in 1970, 2.8 Billion in 1955.

In 1955 there were still many countries in Asia, and Africa that were still considered 3rd world & rural. Today most world economies rely on Oil for most of it's energy.

Demand is huge. Supply ? Not sure, but it won't last forever.

[SB076]

Originally Posted by Bent8

No such thing my friend...it's a fraud!

Oil is everwhere on the planet, new discoveries are always being made...but by keeping certain oil wells capped, the price can be artifically inflated through supply and demand for maximum profit's.

Then the US Federal Reserve goes and injects billions into the stock market to keep it afloat which inturn devalue's the US dollar which inturn drive's crude oil price's up and which inturn drive's just about everthing else up!...phew (catches breath)

The main reaosn food prices are exploding is because diesel price's have gone through the roof and the truckie's are taking it on the chin!

Just remember, without the truckie's, our society would collapse within a matter of days!!

And this conclude's my little rant on world economics, good day to you!

Why are food prices going up if Truckies are taking it on the chin (meaning they are abosrbing the addtional costs?) Its because oil is a finite resource as someone else pointed out - food prices and petrol prices go up as people profiteer from having control (or stock) of items that are in demand

[richa]

Originally Posted by 90sFTW

One question related to oil in general, why is diesel more expensive compared to petrol? Isn't it less refined or something meaning it should be cheaper?

You would think so wouldn't you,except that a couple of years ago(sorry, but don't quote me on all of this),They changed the emmission laws applicable to new diesel engines ,hence oil refineries have had spend more money on R&D and refine their crude to meet these requirements for later model diesel engines

BUT ME I'M NOT SO SURE!

[gz1]

Speaking of related costs, Interest rates are about to rise again to "combat inflation". This is one thing I have never understood. Fuel goes up due to external international influences. This in turn forces the cost of living to go up as we all need to use fuel, and when it doubles in price well cost of living goes up as well. This is called inflation.
So the reserve bank increases interest rates.
How in the hell does that bring down the cost of living and reduce inflation?. As far as I can see increasing interest rates will only further increase inflation because now not only do we have increased fuel costs to deal with but also increased interest rates to pay.
Can anyone enlighten me on this?

[Stav]

Its all pretty depressing ..the current state of affairs. I may have to get mum dad and protest in Sydney with just our undies...

[xtremerus]

Australia was behind Europe in diesel quality and was 'dirty' diesel. Once we 'cleaned' it up, a year or so ago to Euro standard, we have been swamped with all the Euro diesel cars that you see on the market now. I would say that it may? cost the oil companies more to refine than a few years ago, but their silence on the cost in comparision to petrol, has me thinking that they are price gouging.

[MITCHAY]

I paid $1.72 p/lt for BP Ultimate today. $68 for 39lts. I'd hate to have a V8, as I have a 4cyl and I'm thinking about selling.

The worst thing is that the sale price of performance cars will drop big time because of higher petrol costs. You're screwed if you sell or keep!

[Pinch]

I am not regretting trading in the BA XR on the Mini that much now, even though it meant buying a 2nd full time owned car (NC) as our tow car. ( I car share the Forester with my Dad and Brother so only have part time custody). The BA XR spent 85% of its time taking my wife to work, and the Mini is now doing that at half the cost, but still fun on weekends through the park and down the Grand Pacific Drive. I now have a 2nd set of full annual costs for the 'lane, but I reckon it wont be long before swapping the BA XR for the Mini and 'lane will pay off. Despite which I love driving the 'lane and a lot of the time the Forester is sitting in my drive while my Dad bags the 'lane.

On the bright side though I filled the 'lane a few weeks ago but haven't driven it - its now worth whole percentage points of its purchase price more than then, but the depreciation when I go to drive it now will be a killer!

[snappy]

its kills me for work i use my xr8 ute go through about 1.5 to 2 tanks a week thats why im booked in for liquid injection get that in a month might save some cash for a year or so. but when not working i jump on my bobber its 750cc would kill the xr in a quarter and uses 10 litres to 325 kms two wheels people the way to go

[JPFS1]

Originally Posted by gz1

How in the hell does that bring down the cost of living and reduce inflation?. As far as I can see increasing interest rates will only further increase inflation because now not only do we have increased fuel costs to deal with but also increased interest rates to pay.
Can anyone enlighten me on this?

because it eventually forces people into major financial stress, which then in turn will cause them to sell up, which then causes many investment and residential valuations tumbling by oversupply of all sorts of offloaded items etc.

An orchestrated crash?!?!?!?

[Unco]

well, here's a picture for all those complaining about the price of fuel at the bowser... this is the current REALITY. this is how much OIL is being bought/sold for in the CURRENT market. wake up people....

oh, the lowest price on that chart... around $50 a barrel... that was in January 2007. get a clue.

[Unco]

Originally Posted by gz1

Speaking of related costs, Interest rates are about to rise again to "combat inflation". This is one thing I have never understood. Fuel goes up due to external international influences. This in turn forces the cost of living to go up as we all need to use fuel, and when it doubles in price well cost of living goes up as well. This is called inflation.
So the reserve bank increases interest rates.
How in the hell does that bring down the cost of living and reduce inflation?. As far as I can see increasing interest rates will only further increase inflation because now not only do we have increased fuel costs to deal with but also increased interest rates to pay.
Can anyone enlighten me on this?

because the reserve bank have a medium term view on things. if interest rates go up, people will stop (eventually) buying things. as they stop buying things, the demand becomes lower. as demand becomes lower, prices of goods supplied become lower.... for most things.

this doesn't happen with oil though. we all need oil for everything that our modern living requires. not just fuel for our cars. but EVERYTHING. so you can expect the price of fuel to continue climbing regardless of current or future interest rates.

[Bossxr8]

In the Business section of yesterdays paper they say that the only way oil will drop in price is if the US goes into recession, or if the price of oil increases past a point where people can no longer afford it so demand drops off enough for it to decrease in price, which they believe is around $200 a barrel.

[Glennz XR8]

Found this http://www.atimes.com/atimes/Global_.../JE24Dj02.html, Makes for interesting reading.

[Falcon Coupe]

Originally Posted by Glennz XR8

Found this http://www.atimes.com/atimes/Global_.../JE24Dj02.html, Makes for interesting reading.

They say the blame lies with speculators, a colleague of mine put 100k into oil exploration shares four weeks ago, they are worth 140k already.

When this bubble does burst we may see a fall to more reasonable prices.

[gavinw]

Hey Glenn drive your misses car if your worried about putting petrol into your beast, otherwise put it on gas now that you have further to travel.

[Bent8]

Originally Posted by SB076

Why are food prices going up if Truckies are taking it on the chin (meaning they are abosrbing the addtional costs?) Its because oil is a finite resource as someone else pointed out - food prices and petrol prices go up as people profiteer from having control (or stock) of items that are in demand

Like I said, oil is NOT a finite source, oil is a regenerating resource, but imagine if the oil companies came out tomorrow and told everyone that!....the pump price would drop 50% overnight!!...that's not good for profiteering.

Some reading for you http://www.reformation.org/energy-non-crisis.html