Oil Prices tumbling ...

TTony · November 2014

Brent Crude Oil Future three month chart

Now, that's a proper "black Friday".

Our heating & hot water is all from the oil-fired boiler. Heating oil prices follow the crude price quite closely and quickly (unlikely petrol prices). After years of watching the ££s disappear rapidly as soon as we turned the central heating on, I'm looking forward to a cosy, warm winter this year. Heating ON !!!

Phil_aka_Pip · November 2014

so long as nobody nicks your oil

PolarityMan · November 2014

bet petrol prices havent budged

FX_Munkee · November 2014

PolarityMan said:

bet petrol prices havent budged

That's because taxes aren't falling, just the price of the fuel.

Sambostar · November 2014

They have gone down 6p or 7p to be fair, which, given it is a decrease is a massive amount. But unfortunately the rest is tax.

monquixote · November 2014

Oil fired heating really puts you at the whim of the markets.

When we had it I remember filling our tank for about £270 and then ordering some more 6 months later and finding it was £450!

Roland · November 2014

Small tank, or a long time ago?

TheMarlin · November 2014

Oil prices are linked to the value of the US Dollar. This suggest all is not well there. I'm expecting another econimic crash, and soon.

Marlin

Moe_Zambeek · November 2014

Shale revolution is not helping the oil price.

Petrol is down to 121p a litre here.

thomasross20 · November 2014

I am considering a potential move into an oil and gas career.. Hmm..

TTony · November 2014

TheMarlin said:

Oil prices are linked to the value of the US Dollar. This suggest all is not well there

Not really.

Oil is a global commodity and is priced in US$ - as are many other global commodities (wheat, gold, etc) - primarily for ease of trading given the status of the US$.

The actual cost of a barrel of oil is determined by the balance of supply and demand, and the activities of the traders/speculators. Lots of factors (reduced China demand, increased US supply) have changed that balance, resulting in prices taking a tumble.

/economics-lecture

TheMarlin · November 2014

Gold has lost over 25% of it's value in the last two months. I see a patern.

TTony · November 2014

TheMarlin said:

Gold has lost over 25% of it's value in the last two months. I see a patern.

Gold is perceived/used as a "safe haven" investment. Its price generally rises during periods of economic uncertainty (recession, war) when people think it is less risky than other types of investment (eg shares).

Between 2008-2011 (ie the period of the last global recession), the price of gold more than doubled. During the previous 30-odd years of relative economic stability, gold was stable at <$500/oz. The last 6-7 years are - against the long-term value - a "bubble", and it's probably got further to fall.

Factors affecting the price of gold and oil (speculators aside) are completely different.

TTony · November 2014

Price of gold ...

monquixote · November 2014

Roland;429177" said:
Small tank, or a long time ago?

Was only a 1000 litre tank and I didn't let it run down too far

IanSavage · November 2014

TTony said:

Price of gold ...

http://timeswampland.files.wordpress.com/2011/03/austinpowersingoldmember_photos_232.jpg?w=600

digitalscream · November 2014

I seem to recall that the oil price dip was predicted back when the Scottish referendum was going on as a counter to the argument that the oil reserves would be their saviour. Something to do with the Americans flooding the market to reduce Russia's economic power, although I'm not sure that's the cause of this.

beed84 · November 2014

Oh. I see. I was hoping to discover that I could buy an expensive bottle of olive oil for peanuts.

Reverend · November 2014

Why do conspiracy theorists and survivalist types seem to love gold so much?

Evilmags · November 2014

At least it defunds assholes like Putin and Maduro

TTony · November 2014

Reverend said:

Why do conspiracy theorists and survivalist types seem to love gold so much?

Because it's seen as a persistent store of value that is reasonably stable in supply.

Although it has little intrinsic value (ie it's of no real use, other than decoration), gold has been "valued" for just about forever - Egyptian pharoahs being entombed with golden artifacts for example.

Thus, think the conspiracists and survivalists, should the world socio-economic order break down, gold will still be valued, probably more so than any of today's paper currencies (which used to be backed by gold).

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Oil Prices tumbling ...

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