Oil dips below $100
In a clear sign of relief that oil production and refining won’t be severely hampered by hurricane Ike’s devastation, oil has broken through the very important psychological floor, trading at $99.57 as I write.
This is hugely important for global petrol prices. Unfortunately, New Zealand is not likely to benefit a great deal from the price drops. We have had historically high average exchange rates throughout the last year, at the same time this oil price spike was devastating the US and Eurozone. This has protected us from the worst of the price rises. Hard to believe, isn’t it?
Now our exchange rate is dropping back towards its historical average, meaning that oil will have to drop at least as fast in relative terms to keep our pump prices from rising. So far, it has. I have been meaning to get updates of exchange rate and oil charts for some time. I’ll come back later with those charts…
September 15th, 2008 at 10:48 am
Alright I will be the one !!!!
dose this mean peak oil is over ??
September 15th, 2008 at 10:51 am
I don’t think so.
I think it means that demand is drying up as fast as supply.
September 15th, 2008 at 10:59 am
panda,
Demand would seem to be a factor.
Can peak oil be ‘over’?
September 15th, 2008 at 10:59 am
really demand drying up ???
I don’t think so
the American car driver is cutting back but industry isn’t
September 15th, 2008 at 10:59 am
Whoops http://www.stuff.co.nz/4655540a6026.html
September 15th, 2008 at 11:13 am
Demand is not drying up.
The Saudis have told OPEC to f**k off and the traders are dumping stock.
The only thing keeping the price high is the cartel, not resource levels.
Meanwhile, Brazil and Africa announce bigger than expected finds….
September 15th, 2008 at 11:58 am
Actually, I believe that most of the oil price drop has been due to the climbing US dollar; the price of gold has also fallen over the last few months and most currencies have fallen against the US.
In fact, the price of oil could fall to US$70 and still be within an upward trend.
September 15th, 2008 at 12:13 pm
Panda, prices are always a function of supply and demand. One of the key predictions of peak oil is that when global oil production peaks oil prices will not only rise but display substantial volatility around that rising trend.
You willing to bet that oil prices won’t be back at $150 and higher within the next few years?
September 15th, 2008 at 1:06 pm
no I wont bet on tha,t but I will bet on the oil not running out anytime soon
as the price per barrel uses it becomes more economic to extract it from hard to get to places
Great Southern Basin anyone !!!!
I hear there is a little bit down in Antratica
September 15th, 2008 at 2:09 pm
Matt Simmonds has a powerpoint presentation of his assessment of the worlds oil supply.
http://www.simmonsco-intl.com/research.aspx?Type=msspeeches
September 15th, 2008 at 2:15 pm
Which one you talking about JH… there’s 20-30 presentations there….
September 15th, 2008 at 2:25 pm
Frog said: “In a clear sign of relief that oil production and refining won’t be severely hampered by hurricane Ike’s devastation, oil has broken through the very important psychological floor, trading at $99.57 as I write.”
actually Frog, I think it’s more likely to be opposite. 17 oil refineries are out of action due to the hurricane. And the price that has dropped is the price of crude oil. The price of crude oil has dropped because there aren’t enough oil refineries to process the crude oil into refined oil.
If I’m right, the price of refined oil will now rise. If the price of refined oil falls, I’ll be very surprised. Very difficult for it to fall with that many refineries out of action.
September 15th, 2008 at 2:26 pm
The latest one at the top.
September 15th, 2008 at 2:27 pm
Actually it’s a PDF presentation.