wheres the pies Posted December 12, 2014 Share Posted December 12, 2014 given that the price of oil is at its lowest for 5 years surely the airline company's should start to bring there flight prices down as they stand to make billions out of the low price of oil do you think they will pass this on to the customer? My guess is no Quote Link to comment Share on other sites More sharing options...
Flora MaDonald Posted December 12, 2014 Share Posted December 12, 2014 I see Wetabix Heed was quick to mention Alex Salmond when this was mentioned on his shitey show last night. Quote Link to comment Share on other sites More sharing options...
wheres the pies Posted December 12, 2014 Author Share Posted December 12, 2014 aye seen brillo heed having a wee dig at salmond Niel is the only guy l know that can combe his hair from his armpits onto his heed Quote Link to comment Share on other sites More sharing options...
Khana Lagur Posted December 12, 2014 Share Posted December 12, 2014 I'm sure the airlines will cut their prices but they will do it according to the price they paid for their forward contracts. Some airlines buy oil up to two years ahead and pay the forward (envisioned) price at that time - which was likely to be higher than it presently is. At that time prices would be seen remaining high as US fracking was at low level, Iran and Iraq were still under sanction and much of Libya and Algeria's infrastructure was in ruins. All that has changed. Iran, Libya and Algeria are OPEC members and are desperate to sell oil to make up for interruptions of the past few years. Currently you have more than half of OPEC members desperate to sell oil for domestic reasons and OPEC is a members club that works for its members, hence their reluctance to cut output. Flight prices will likely come down but slowly over the next year or so as lower priced forward contracts kick in. Quote Link to comment Share on other sites More sharing options...
Alibi Posted December 12, 2014 Share Posted December 12, 2014 The oil price will rise again once the reason for it being dropped - to bankrupt the fracking industry and basically wipe out some of the competition - has been achieved. Low prices don't helop the likes of Suadi Arabia but they can afford to tolerate them for a while to ensure they keep their market share. That is what the current dip is about rather than traditional market forces. there is also some who think it's a way of damaging Russia. There's a table doing the rounds online showing the marginal cost of producing a barrel of oil from various sources. Lowest is the Middle East where they break even at between 10 and 17 dollars a barrel. Fracking is typically around 80 dollars a barrel so you can see how low prices would ruin them, but a lot of countries also need high prices to make their oil worth extracting. Quote Link to comment Share on other sites More sharing options...
Larky Masher Posted December 12, 2014 Share Posted December 12, 2014 The oil price will rise again once the reason for it being dropped - to bankrupt the fracking industry and basically wipe out some of the competition - has been achieved. Low prices don't helop the likes of Suadi Arabia but they can afford to tolerate them for a while to ensure they keep their market share. That is what the current dip is about rather than traditional market forces. there is also some who think it's a way of damaging Russia. There's a table doing the rounds online showing the marginal cost of producing a barrel of oil from various sources. Lowest is the Middle East where they break even at between 10 and 17 dollars a barrel. Fracking is typically around 80 dollars a barrel so you can see how low prices would ruin them, but a lot of countries also need high prices to make their oil worth extracting. http://uk.businessinsider.com/crude-oil-cost-of-production-2014-5 Quote Link to comment Share on other sites More sharing options...
biffer Posted December 12, 2014 Share Posted December 12, 2014 The oil price will rise again once the reason for it being dropped - to bankrupt the fracking industry and basically wipe out some of the competition - has been achieved. Low prices don't helop the likes of Suadi Arabia but they can afford to tolerate them for a while to ensure they keep their market share. That is what the current dip is about rather than traditional market forces. there is also some who think it's a way of damaging Russia. There's a table doing the rounds online showing the marginal cost of producing a barrel of oil from various sources. Lowest is the Middle East where they break even at between 10 and 17 dollars a barrel. Fracking is typically around 80 dollars a barrel so you can see how low prices would ruin them, but a lot of countries also need high prices to make their oil worth extracting. I'm certain this is to do with Russia. The Saudis wouldn't piss off the yanks, far more likely to be doing it under persuasion from the US to bach Russia down and get Putin out of power. A high risk game IMO. Quote Link to comment Share on other sites More sharing options...
phart Posted December 12, 2014 Share Posted December 12, 2014 (edited) The Saudi's have been flooding the market for the Americans to put Pressure on the russians. EDIT: I agree with Biffer. Edited December 12, 2014 by phart Quote Link to comment Share on other sites More sharing options...
biffer Posted December 12, 2014 Share Posted December 12, 2014 The Saudi's have been flooding the market for the Americans to put Pressure on the russians. EDIT: I agree with Biffer. I feel like Nick Clegg now. Quote Link to comment Share on other sites More sharing options...
phart Posted December 12, 2014 Share Posted December 12, 2014 I feel like Nick Clegg now. I don't know why i made you feel like nick Clegg, but i feel bad for making you feel like Nick Clegg it can't be pleasant, my apologies Quote Link to comment Share on other sites More sharing options...
thplinth Posted December 12, 2014 Share Posted December 12, 2014 Yep yet another attacki on Russia. I wonder what the break even point for North sea oil is? How long before it starts causing lay offs. Quote Link to comment Share on other sites More sharing options...
jailender Posted December 12, 2014 Share Posted December 12, 2014 It already has caused lay offs. Quote Link to comment Share on other sites More sharing options...
phart Posted December 12, 2014 Share Posted December 12, 2014 Yep yet another attacki on Russia. I wonder what the break even point for North sea oil is? How long before it starts causing lay offs. Zbigniew Brzezinski is involved with Obama, He himself wrote last century that "without ukraine Russian is nothing" (paraphrase) we should expand NATO etc. While ignoring the Israeli pull on foreign policy demanding more attention in the middle-east. Quote Link to comment Share on other sites More sharing options...
Auchinyell Sox Change Posted December 12, 2014 Share Posted December 12, 2014 Yep yet another attacki on Russia. I wonder what the break even point for North sea oil is? How long before it starts causing lay offs. talking with a mate back home recently lot of the future subsea development work put on hold in summer due to speculation on indyref oil price since then has done liitle to get these moving he mentioned 10% rate cuts and 4 day weeks for some Quote Link to comment Share on other sites More sharing options...
Freeedom Posted December 12, 2014 Share Posted December 12, 2014 this is really bad for my employment prospects Quote Link to comment Share on other sites More sharing options...
hampden_loon2878 Posted December 12, 2014 Share Posted December 12, 2014 It is all to do with Russia make no mistake about it... All the contractors in Aberdeen will be getting the heave ho,, thats what they get paid the big bucks for,,, its risky with no job security Quote Link to comment Share on other sites More sharing options...
thplinth Posted December 12, 2014 Share Posted December 12, 2014 (edited) You can just imagine all the headlines right now had we voted Yes. "Salmond's Oil Dream Down the Pan"... ha ha ha blah blah blah on and on and on...bbc wankdom. But the funny thing is this oil crash is a political move and the big money oil No voters of Aberdeen hugely endorsed it. A Yes was a chance to throw a big spanner in this war machine. A No was like a pint of petrol onto the fire. Aberdeen's destiny is to economically level with her sister city Dundee. Edited December 12, 2014 by thplinth Quote Link to comment Share on other sites More sharing options...
hunchy Posted December 12, 2014 Share Posted December 12, 2014 Why is it when the price of oil drops quickly the price at the pump for fuel goes down slowly but when the price of oil goes up the pumps jump there price up Quote Link to comment Share on other sites More sharing options...
Toepoke Posted December 13, 2014 Share Posted December 13, 2014 Why is it when the price of oil drops quickly the price at the pump for fuel goes down slowly but when the price of oil goes up the pumps jump there price up I read a few years back it took about 3 weeks for an oil price drop to filter to the pumps, but 3 minutes for a price rise to appear at the pumps... Quote Link to comment Share on other sites More sharing options...
wheres the pies Posted December 13, 2014 Author Share Posted December 13, 2014 The supermarkets are the same remember when the price of oil was really high the supermarkets blamed the high price of oil for the increase in prices in the shops so we all now wait for them to start to bring there prices down but l won't hold my breath Quote Link to comment Share on other sites More sharing options...
Mark frae Crieff Posted December 13, 2014 Share Posted December 13, 2014 Remember cheaper fuel etc will upset the tax man ... So our beloved Government will be in no hurry to get the fuel producers to lower their prices... Quote Link to comment Share on other sites More sharing options...
MacWalka Posted December 13, 2014 Share Posted December 13, 2014 Remember cheaper fuel etc will upset the tax man ... So our beloved Government will be in no hurry to get the fuel producers to lower their prices... The tax paid on fuel is a set duty not a percentage. Fuel prices don't affect the tax take at the pumps. Low oil prices will cause the north sea to slow down which will reduce tax take at that point. Quote Link to comment Share on other sites More sharing options...
Mark frae Crieff Posted December 13, 2014 Share Posted December 13, 2014 The tax paid on fuel is a set duty not a percentage. Fuel prices don't affect the tax take at the pumps. Low oil prices will cause the north sea to slow down which will reduce tax take at that point. I was thinking more vat side... -1p a litre would soon add up... Quote Link to comment Share on other sites More sharing options...
MacWalka Posted December 13, 2014 Share Posted December 13, 2014 I was thinking more vat side... -1p a litre would soon add up... Fair point. Quote Link to comment Share on other sites More sharing options...
ShedTA Posted December 13, 2014 Share Posted December 13, 2014 You can just imagine all the headlines right now had we voted Yes. "Salmond's Oil Dream Down the Pan"... ha ha ha blah blah blah on and on and on...bbc wankdom. But the funny thing is this oil crash is a political move and the big money oil No voters of Aberdeen hugely endorsed it. A Yes was a chance to throw a big spanner in this war machine. A No was like a pint of petrol onto the fire. Aberdeen's destiny is to economically level with her sister city Dundee. Dundee is on the way back, havent you heard? Quote Link to comment Share on other sites More sharing options...
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