Fuel prices hitting an eight year high

[Sithara007]

As I understand, AED is another intermediary in a trading link. Adding one more link, one more hungry mouth always increases total cost of a product. As to current price decrease, it cant be connected with currency change or addition. Volatility aint that huge, it can be counted in tens of percents. Yesterday, after making my post, I paid more attention to fuel price, and they are even lower. Cant explain why. The lowest was 1.48 EUR for petrol, while I am already used to see prices to be on 1.70 EUR level.

Obviously United Arab Emirates Dirham (AED) is being used as an intermediary. Indian companies don't want to use CNY (the government has prohibited them from doing so), and therefore they make the payments to Russian oil companies using AED. The Russians convert AED to CNY or any other currency they can use to import items that they need (such as pharmaceuticals and engine parts). Now the trade may shift to Singapore Dollar (SGD) or Hong Kong Dollar  (HKD) since the UAE banks are not very comfortable with making payments to Russian clients.   

[1714824109]

1714824109

[1714824109]

1714824109

[bestcoins1]

its not going to be rich in times like this because they're also going to be robbed. if you just watch the news daily about robberies and killings, you'd be afraid to allow your family to go out.

Lol, it seems like that's quite true so I rarely watch news like that in my days so far because I also don't want to limit my family when they want to leave the house. Likewise with other things where when my family and I want to have something that they think could be better, I will also obey them even though I will also do some kind of research myself on the matter, for example using electric vehicles or non-electric vehicles.

price of gas will rocket more because Putin had sanctioned EU also through his Nordstream. their leaders are affecting the world. I might just be using bike forever. 

Using a bicycle forever in your life will not be bad for your own health because now many people also use bicycles to exercise. And this is also quite beneficial for the body and there are also other benefits such as being able to reduce the cost of buying fuel because rowing bikes don't need that. It seems that Putin is also very serious about imposing sanctions on the European Union because Putin really doesn't want any country to disturb him in any sector, let alone countries in the west.

[DrBeer]

Despite the hysterical attempts of Russian propaganda to come up with at least some kind of fairy tale, how oil prices will rise and everyone will freeze without Russian gas - the market stubbornly shows that reality is far from propaganda

1. Today, Urals oil, "here and now" is below $70. But at this price, no one buys it. China is buying up the surplus already at a price of 32.5 - 34 dollars per barrel, with logistics costs on the supplier's side
2. Last week, after the visit of high-ranking US representatives to India, India reduced the purchase of Russian oil by 40%

China and India are Russia's "best friends" 

Urals was trading at $90 per barrel when Brent prices were around $120 per barrel. But the discount narrowed later, as Asian countries rushed to purchase the cheaper Russian crude. And it narrowed even further as the EU nations went on a shopping spree recently, to fill their oil reserves before the embargo on Russian crude is applied. Here in India, the private refineries are complaining that the discount for Russian crude is not attractive enough to pay for the higher freight costs. And that is the reason why India recently reduced Russian crude imports.

It should be understood that today's price of Urals crude oil is largely indicative, but it is not the price that Russia receives in its budget. Let me explain. For example, let the declared price be 100 dollars. But now most of the oil is bought for yuan and rupees. Yes, they are somehow recalculated into a "virtual dollar", but the facts are that Russia does not receive any dollars.  Moreover, even with the same rupees there are a lot of problems !
Even the head of Rosneft complained about sanctions and blamed the Central Bank for the hang-up of export proceeds in India....
 

At the same time, sanctions against the "gray fleet" have led to a surge in freight prices: to rent a ship to India, which has become the largest buyer of Russian oil, now costs $10-11 million, although in early October it was $8 million, and in September - only $5 million. This situation presses on the price of Russian grade Urals, which is again sold at a discount of about $20 to the North European benchmark Brent. Last week, the price of Russian oil fell below $60 per barrel, while the government has budgeted $71 in the 2024 budget.
https://www.moscowtimes.ru/2023/11/30/sechin-pozhalovalsya-na-sanktsii-protiv-rosnefti-i-problemi-s-vozvratom-viruchki-ot-eksporta-a114678

I.e. it is not the price of oil that is rising, but the price of "gray transportation" costs

[serveria.com]

Despite the hysterical attempts of Russian propaganda to come up with at least some kind of fairy tale, how oil prices will rise and everyone will freeze without Russian gas - the market stubbornly shows that reality is far from propaganda

1. Today, Urals oil, "here and now" is below $70. But at this price, no one buys it. China is buying up the surplus already at a price of 32.5 - 34 dollars per barrel, with logistics costs on the supplier's side
2. Last week, after the visit of high-ranking US representatives to India, India reduced the purchase of Russian oil by 40%

China and India are Russia's "best friends" 

Urals was trading at $90 per barrel when Brent prices were around $120 per barrel. But the discount narrowed later, as Asian countries rushed to purchase the cheaper Russian crude. And it narrowed even further as the EU nations went on a shopping spree recently, to fill their oil reserves before the embargo on Russian crude is applied. Here in India, the private refineries are complaining that the discount for Russian crude is not attractive enough to pay for the higher freight costs. And that is the reason why India recently reduced Russian crude imports.

It should be understood that today's price of Urals crude oil is largely indicative, but it is not the price that Russia receives in its budget. Let me explain. For example, let the declared price be 100 dollars. But now most of the oil is bought for yuan and rupees. Yes, they are somehow recalculated into a "virtual dollar", but the facts are that Russia does not receive any dollars.  Moreover, even with the same rupees there are a lot of problems !
Even the head of Rosneft complained about sanctions and blamed the Central Bank for the hang-up of export proceeds in India....
 

At the same time, sanctions against the "gray fleet" have led to a surge in freight prices: to rent a ship to India, which has become the largest buyer of Russian oil, now costs $10-11 million, although in early October it was $8 million, and in September - only $5 million. This situation presses on the price of Russian grade Urals, which is again sold at a discount of about $20 to the North European benchmark Brent. Last week, the price of Russian oil fell below $60 per barrel, while the government has budgeted $71 in the 2024 budget.
https://www.moscowtimes.ru/2023/11/30/sechin-pozhalovalsya-na-sanktsii-protiv-rosnefti-i-problemi-s-vozvratom-viruchki-ot-eksporta-a114678

I.e. it is not the price of oil that is rising, but the price of "gray transportation" costs

I guess you don't realize that it's a pointless, never-ending fighting with consequences? Close this sales channel, Russia will come up with 2 new ones. They have already mixed oil with other brands in order to trick the sanction system and done some other similar stuff. Sanctions are not working, it's EU and US suffocating themselves, nothing more. 

[DrBeer]

Despite the hysterical attempts of Russian propaganda to come up with at least some kind of fairy tale, how oil prices will rise and everyone will freeze without Russian gas - the market stubbornly shows that reality is far from propaganda

1. Today, Urals oil, "here and now" is below $70. But at this price, no one buys it. China is buying up the surplus already at a price of 32.5 - 34 dollars per barrel, with logistics costs on the supplier's side
2. Last week, after the visit of high-ranking US representatives to India, India reduced the purchase of Russian oil by 40%

China and India are Russia's "best friends" 

Urals was trading at $90 per barrel when Brent prices were around $120 per barrel. But the discount narrowed later, as Asian countries rushed to purchase the cheaper Russian crude. And it narrowed even further as the EU nations went on a shopping spree recently, to fill their oil reserves before the embargo on Russian crude is applied. Here in India, the private refineries are complaining that the discount for Russian crude is not attractive enough to pay for the higher freight costs. And that is the reason why India recently reduced Russian crude imports.

It should be understood that today's price of Urals crude oil is largely indicative, but it is not the price that Russia receives in its budget. Let me explain. For example, let the declared price be 100 dollars. But now most of the oil is bought for yuan and rupees. Yes, they are somehow recalculated into a "virtual dollar", but the facts are that Russia does not receive any dollars.  Moreover, even with the same rupees there are a lot of problems !
Even the head of Rosneft complained about sanctions and blamed the Central Bank for the hang-up of export proceeds in India....
 

At the same time, sanctions against the "gray fleet" have led to a surge in freight prices: to rent a ship to India, which has become the largest buyer of Russian oil, now costs $10-11 million, although in early October it was $8 million, and in September - only $5 million. This situation presses on the price of Russian grade Urals, which is again sold at a discount of about $20 to the North European benchmark Brent. Last week, the price of Russian oil fell below $60 per barrel, while the government has budgeted $71 in the 2024 budget.
https://www.moscowtimes.ru/2023/11/30/sechin-pozhalovalsya-na-sanktsii-protiv-rosnefti-i-problemi-s-vozvratom-viruchki-ot-eksporta-a114678

I.e. it is not the price of oil that is rising, but the price of "gray transportation" costs

I guess you don't realize that it's a pointless, never-ending fighting with consequences? Close this sales channel, Russia will come up with 2 new ones. They have already mixed oil with other brands in order to trick the sanction system and done some other similar stuff. Sanctions are not working, it's EU and US suffocating themselves, nothing more. 

If this were pointless, then the Kremlin would not be screaming about the fall in income, the lifting of sanctions, they would not be cutting budgets for their farm laborers, they would not be degrading social security for the population, etc. Those. everything works, of course not 100% but very effective. Now we have figured out the operating scheme of the “shadow fleet”, identified the participants and the scheme, and “the crown is closing”, and it is no longer profitable for buyers, and no one needs Russian oil at the price of the Middle East

And this is easy to see even according to official data:
- The revenue of the largest oil and gas companies in Russia fell by 41% in January-September 2023, the Central Bank of the Russian Federation reported on Thursday in its Financial Stability Review. Report of the Central Bank of Russia, everyone can read it http://cbr.ru/Collection/Collection/File/46610/2_3_q_2023.pdf
- Urals fell in price by 10.6% mom in November, the discount to Brent increased to $10.3
- And the most positive news: Sanctions will last for years - the United States intends to halve Russia’s current oil and gas revenues by 2030.

[serveria.com]

If this were pointless, then the Kremlin would not be screaming about the fall in income,

Do you hear them whining? Where? Perhaps you can provide some sources? Ahh, I forgot, you never provide sources! And "screaming" you hear is in your head most probably...

Now we have figured out the operating scheme of the “shadow fleet”, identified the participants and the scheme, and “the crown is closing”, and it is no longer profitable for buyers, and no one needs Russian oil at the price of the Middle East

Now, this is interesting... Who are "we" you are referring to?

And this is easy to see even according to official data:
- The revenue of the largest oil and gas companies in Russia fell by 41% in January-September 2023, the Central Bank of the Russian Federation reported on Thursday in its Financial Stability Review. Report of the Central Bank of Russia, everyone can read it http://cbr.ru/Collection/Collection/File/46610/2_3_q_2023.pdf

Fell by 41% compared to what? Last year's top? But I've actually translated the document and it's mostly positive news there.  

- And the most positive news: Sanctions will last for years - the United States intends to halve Russia’s current oil and gas revenues by 2030.

This is actually good news for Russia. It means sanctions can't hurt them and Russia won't disintegrate into any small states or some other apocalyptic crap you're spreading won't happen. But the question is: will Ukraine still be around in 2030?  

[MFahad]

As Saudi Arabia has been the best fuel producer we all know about the fact. The have no use of it on almost when the people need it. That's why the price of water in the Saudi Arabia is high as compared to the Fuel in  Saudi Arabia.

All because they have their own wells of the Fuel through which they are supplying in other sense they are exporting these fuel to other countries and are getting their profit in some other ways of income. That's why they didn't mostly take loan from other countries and are independent.

Those materials which are using in country abundantly will have no impact on Economy but those materials which are excessive in quantity are used for the purpose of exporting to other countries therefore it helps in making the economy of a country better.

Those countries in which the system of exporting is stronger than the process of importing will be successful always because others country will depend on them but they will not depends on others. Although water supply is maximum but is used in vast quantity by all countries all around the world therefore the quantity become less with the passage of time so obviously there will be a time when price of water will become more higher than the worth of energy supply. The price is related to the quantity so when quantity is lower the price will be higher and when quantity reduces price will directly proceed.

[Ultegra134]

It's indeed been a while since this thread was last updated, but it's an interesting subject. Fortunately, crude oil prices have slightly dropped compared to what they were a few months ago, surpassing $90 or even $100 in some cases. Brent crude is now at $76.50 and WTI crude at $72, still a lot more expensive than it used to be a few years ago. Unfortunately, I don't expect prices to fall back to what they used to be anytime soon or ever, while the EUR/USD exchange rate is far from being what it used to be.

Even though crude has dropped in price and the exchange rate isn't that bad (1 EUR was equal to $1.10 a few days ago), thanks to our government and pure market speculation, fuel prices haven't dropped too much, with petrol costing an average of €1.87/liter and diesel at €1.69/liter. I'm not sure what to expect in the future, but I'm guessing that high fueling costs have become the norm, as €1.85 per liter was once considered high and was mostly noticed during the summer periods; now it's merely the average price to pay.

[Winterfrost]

Fuel prices have skyrocketed in the past few months, on a worldwide scale. Here in Greece, the average price per liter for 95 Unleaded petrol is €1.75, while for diesel it's approximately €1.45. A huge surge is also expected, in the soon-to-be launched season of heating gas oil, which is expected to start within the next few weeks, with a rumored price of at least €1.10/liter.

I've read that this spike in prices is triggered by an increase in price per barrel, due to oil companies worrying about the pandemic, while their production is limited compared to the higher demand. Have you heard anything relative? What's causing this surge in prices, could it be a one-off thing which lasts a couple of months at most?

What's the average cost of petrol/diesel in your country? Share your thoughts on what exactly is causing this crisis, which is also spiking electricity costs up, increasing the budget for the average household.

Sources:
https://www.bruegel.org/2021/09/is-europes-gas-and-electricity-price-surge-a-one-off/
https://www.bbc.com/news/business-58718148

Serioously i taught this was a thing of a particular country i never knew it is something that is general and affects even countries i do not expect. Truly the world is going scarcity of fuel and this is as a result of lack of the raw products that produces fuel. We know that the main produces of fuels comes from the decay of dead bodies centuries ago. Especially during the world war. But currently there have been limit to which those products are being obtained and that is why countries who have the natural resources are increasing their prices on a daily basis. So that only few can afford it and those who cannot do without fuel will have no option but to buy it. The question is will there be a time when there will be no fuel for the global economy and what would be the alternative.