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Why are oil prices now dropping?


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There is rarely any reason for it to go up other than for pure greed by the cartel of producers. The slightest little thing in the news is just an excuse to put it up. It's come down a bit recently at petrol pumps but most other associated products such as electricity, gas, lpg etc haven't fallen.

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I don't actually know how much petrol costs, because I see it as an essential commodity and therefore believe that moaning over which place is 3p cheaper than another is a little sad, in addition to being pretty futile. We have to use the stuff anyway, so driving an extra mile to save 3p is not only missing the point a tad, but isn't exactly my idea of a good time either.

 

However, moaning is sooo last year so I'll stop it at once!

 

Whilst filling my car up last night, I noticed that it cost me several pounds less than it would normally (and no, it wasn't half full already!:D)

 

When I got back in the car, Lee said that petrol prices have gone down. I just wondered if anyone knew why and when this happened? Presumably it's linked to the change in oil prices?

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There is rarely any reason for it to go up other than for pure greed by the cartel of producers. The slightest little thing in the news is just an excuse to put it up. It's come down a bit recently at petrol pumps but most other associated products such as electricity, gas, lpg etc haven't fallen.

 

But the cartel (I'm assuming you're referring to Opec) dont set the prices.

Those are set by the mysterious force we call the "market". I read something where Opec were looking to cut production in order to lift the prices...

 

A 10% drop is significant, and it has happened without much fanfare, hence the question why ???

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Cheers Chris :thumbsup:

 

Well fingers crossed that there are no more significant confrontations in the Middle East.

 

I was just searching on the web and came across an article claiming that the US had stockpiled oil ahead of the mid-term elections.

 

Regardless, I'm sure everyone will be happy to be paying less at the pump. :)

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But the cartel (I'm assuming you're referring to Opec) dont set the prices.

Those are set by the mysterious force we call the "market". I read something where Opec were looking to cut production in order to lift the prices...

 

A 10% drop is significant, and it has happened without much fanfare, hence the question why ???

They say it's the market but the producer just ramp production up and down when it suits them. They never lose, if they reduce production they just increase the price. The industry has the capacity to produce far more than it does. These various pipelines don't increase capacity out of neccessity they just give that particular supplier more control.

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