So why didn't the petrol price go up 700% since oil was $15 back in
1999? As you say, the reasons are many, but one thing is for sure, petrol prices have had very little in the way of linear correlation with oil price.Dave.
Hey Dave you are already right there, depending on how you look at it.
($15/b * 700%)/100 = $105/b
PS. Every one of you are being affected except me and the one I have chosen to help.
...Jim Thompson
-- | James E.Thompson, P.E. | mens | | Analog Innovations, Inc. | et | | Analog/Mixed-Signal ASICK's and Discrete Systems | manus | | Phoenix, Arizona Voice:(480)460-2350 | | | E-mail Address at Website Fax:(480)460-2142 | Rat Bastard | | http://www.analog-innovations.com | 1962 | America: Land of the Freedom Abusers, Because of the Rat Bastards.
What a blazing idiot. You are so obvious from the content of your forgeries. Who has to look at the headers any more. Go away forever.
The popular price per barrel quoted in the news is the spot market price, and ignores the oil refined within vertically-integrated companies and oil delivered under long-term, fixed-price contracts.
But those prices are not the news with which you can manipulate the sheeple.
The oil within a vertically integrated company is worth as much as the price on the spot market because they have the option of refining it or selling it raw. The spot market is a good but nervous indicator of the price of oil. The long term contracts will all end some day and a new contract be written at the new higher price. The trend is smoothened by that effect but the average rate of increase is not reduced.
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The oil within a vertically integrated company is worth what it can be sold for. Introducing large stocks into the open market will reduce the spot price.
Long term contracts are set at a price point where both the buyer and seller think they will make money over the term of the contract.
I don't think it really would or at least not by very much. If a vertically integrated company sells its crude oil into the market, it won't be refining it into finished products and selling those. Others will be making that finished product from the crude oil instead. The net effect won't be anything like putting new oil from a well onto the market.
Yes and those predictions are based on the conditions at the time the contract is made. The next batch of contracts will be written in a very different environment.
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