OIL PRICES
ROTTERDAM
Oil prices are posting gains this morning following news that Tropical Storm
Dolly has formed in the US Gulf of Mexico and is projected to move through the
key oil region in the US Gulf of Mexico and reach Texas on Wednesday evening.
Oil traders are following the progress of the storm to see if it will strengthen
into a hurricane although as yet oil companies have no plans to evacuate oil
workers. Traders are also digesting news from the Iranian nuclear talks which
were held in Geneva over the weekend. The talks ended in stalemate with the EU
saying that Iran has two weeks to rein in its nuclear program or face further
sanctions. Analysts report that the oil price graphs remain bearish with
Rotterdam kero / diesels all below the 55 day moving average for the first time
since February and the momentum indicator pointing down.
Source: Oil market Journal. 21/7/08
LONDON
Prices are posting modest gains with Brent Crude finding some support. There is
strong support for the London Gas Oil Future.
Source: Oil market Journal. 21/7/08
NEW YORK
Prices are posting gains. The CTFC report published on Friday night showed that
hedge funds remain sellers of oil.
Source: Oil market Journal. 21/7/08
HM Treasury Statement: Fuel Duty Increase Postponed
The Chancellor of the Exchequer, Alistair Darling MP, today announced that he is postponing the 2 pence per litre increase in fuel duty...
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HEATING OIL THEFTS: Police have issued warnings following a pattern of heating oil thefts ...
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OIL PRICE FACTORS: In the old days, the oil price was a relatively simple matter of cost curves, supply and demand. These days, fear is just as likely to set the price as fundamentals.
Click here for full article . . .
Greenspan Says Oil to Keep Rising
Former Federal Reserve Chairman Alan Greenspan said oil prices will keep rising...
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Crude Oil Price
Increased volatility in financial markets, ongoing geopolitical tensions and now financial and monetary uncertainties make it more difficult than usual to forecast oil prices. We anticipate...
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Heating Oil Cost Effectiveness
Oil remains the most cost-effective for those without access to the mains gas network.
Click: Oil for Heating
Source: OFTEC
Click: More about heating oil economics for consumers.
Click: A note about Calor Gas "Selective Comparison"
Source: Sheila Hancock of the Federation Of Petroleum Suppliers
How are fuel prices set?
"There are four primary factors that are taken into account when setting the prices; crude costs, refinery costs, taxes and return on capital investment."
What might cause a price increase?
One of the reasons crude prices might rise is because the tensions in the Middle East continue to increase along with concerns about potential interruptions to supply of crude oil in South America and East Africa. Natural disasters and political influences also have an affect.
However the price is also influenced by rapid global economy recovery and the expansion and emergence of burgeoning economies such as China, which increased its crude imports by 35% last year on the previous year.
Increased demand obviously impacts on price and market speculation on future high prices can greatly exaggerate the price increases.
Taxes are also a factor. in the UK tax is 70% of the price whereas in the US it is only 23%.
