Fuel prices hitting an eight year high

[DrBeer]

What surprises you? How does the oil market work?
There is a purchase of the "future period", there is a purchase of the "here and now"
Accordingly, now there is oil on the market that was bought in the past at a price that was most likely very high (on expectations of further price growth). Plus, there is oil that was bought a month ago, when the price was also higher. And oil is just starting to flow, which has fallen in price, and will continue to fall in price.
In total, conditionally we have (all numbers are for an example, so that the essence of the process is clear):
65% at $150
30% at $120
5% at $95

What do you think - what price of oil will most affect TODAY's fuel price?
In order for fuel to decrease in proportion to the current price of oil, time must pass, and then the situation for reserves for processing will be as follows:
65% at $95
30% for $85
5% at $75

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1715206053

[kensaii]

All talks about future trade, oil priced in, oil price are driven by speculation from summer trips,... I'm not buying it! The oil cartel just wants to drive the oil price back to high again and justify it with their trade bullshit. We're fucked as this is the summer price. If back to fall/winter, coal along with natural gas will both be in demand. Oil can follow with mark-up price based on the baseline right now.

Despite the economy is in a shabby situation. China doesn't use as much oil as before, with no domestic tours in a country with a population of 1,4 billion. God, the oil cartel truly got everyone in their string.

[Sithara007]

All talks about future trade, oil priced in, oil price are driven by speculation from summer trips,... I'm not buying it! The oil cartel just wants to drive the oil price back to high again and justify it with their trade bullshit. We're fucked as this is the summer price. If back to fall/winter, coal along with natural gas will both be in demand. Oil can follow with mark-up price based on the baseline right now.

Despite the economy is in a shabby situation. China doesn't use as much oil as before, with no domestic tours in a country with a population of 1,4 billion. God, the oil cartel truly got everyone in their string.

When Trump was the president, he kept fuel prices at a very affordable level. Back in 2020, crude oil was trading at around $40 per barrel. And then the OPEC cartel decided to support Biden in his election bid. Biden returned the favor when he became the president, by banning fracking in federal lands and cancelling the Keystone XL pipeline. Crude oil prices immediately went up by 150%. The ongoing Russo-Ukrainian war is only having a nominal impact on the prices. Most of the price rise resulted from Biden's stupid policies in 2021.

[posi]

All talks about future trade, oil priced in, oil price are driven by speculation from summer trips,... I'm not buying it! The oil cartel just wants to drive the oil price back to high again and justify it with their trade bullshit. We're fucked as this is the summer price. If back to fall/winter, coal along with natural gas will both be in demand. Oil can follow with mark-up price based on the baseline right now.

Despite the economy is in a shabby situation. China doesn't use as much oil as before, with no domestic tours in a country with a population of 1,4 billion. God, the oil cartel truly got everyone in their string.

When Trump was the president, he kept fuel prices at a very affordable level. Back in 2020, crude oil was trading at around $40 per barrel. And then the OPEC cartel decided to support Biden in his election bid. Biden returned the favor when he became the president, by banning fracking in federal lands and cancelling the Keystone XL pipeline. Crude oil prices immediately went up by 150%. The ongoing Russo-Ukrainian war is only having a nominal impact on the prices. Most of the price rise resulted from Biden's stupid policies in 2021.

I don't know why he is doing this, the American people are also paying for that high price of fuel, not only the countries abroad. In the event that President Biden is the main cause of this price spike, then he is shooting himself in the foot because he will lose the support of the people when he runs for another term. Can you explain more?

[lucates]

The situation I believe is currently hitting almost every country due to sanctions impose on Russia and hence causing supply shock.
here in my country due to the hike in price of fuel recently though we're one of the oil blessed nation, it has drastically increased the price of transportation and base on past experiences, whenever the price of fuel is increased in my country it usually affects the price of goods and commodities , so this price hike has even worsen the case here coupled with the current inflation ravaging the Economy. But all this for my view is coinsidently happening to help shift the world's dependency on fossil fuel and into Greener energy they have been advocating for years now.

We do not expect gas prices to ease this year. Because of the Russia-Ukraine war. And also the World Bank  warns the global economy may suffer 1970s-style stagflation. Even electric vehicles and green energy have their own disadvantages; they need high expenses and high technology, so they will take time. So the government should initiate temporary solutions like reducing tax rates etc.

[Ultegra134]

The situation I believe is currently hitting almost every country due to sanctions impose on Russia and hence causing supply shock.
here in my country due to the hike in price of fuel recently though we're one of the oil blessed nation, it has drastically increased the price of transportation and base on past experiences, whenever the price of fuel is increased in my country it usually affects the price of goods and commodities , so this price hike has even worsen the case here coupled with the current inflation ravaging the Economy. But all this for my view is coinsidently happening to help shift the world's dependency on fossil fuel and into Greener energy they have been advocating for years now.

We do not expect gas prices to ease this year. Because of the Russia-Ukraine war. And also the World Bank  warns the global economy may suffer 1970s-style stagflation. Even electric vehicles and green energy have their own disadvantages; they need high expenses and high technology, so they will take time. So the government should initiate temporary solutions like reducing tax rates etc.

It's been a while since I posted on this thread but wanted to make an update anyway. I don't get where you're seeing a possible ease on oil prices, there was a decrease in global prices the previous weeks but it was short-lived. We're already above $105/barrel of Brent oil. I'm certain that gas prices will remain at current levels for the whole 2023, unless the war, the sanctions or both end (both are unlikely).

[bakasabo]

Good for Germans. But not every country has such a developed railroad network, not every town is connected to a railroad station. Personal transport is still most popular way to get somewhere.I think it will take tens years to develop hydrogen-powered vehicles and "charging" stations for them.

Once again I observe that diesel cost more than petrol. First such think happened in the beginning of Russia - Ukraine war. What is this, just an inflation or another huge strike from Russia is expected ?

[livingfree]

We do not expect gas prices to ease this year. Because of the Russia-Ukraine war. And also the World Bank  warns the global economy may suffer 1970s-style stagflation. Even electric vehicles and green energy have their own disadvantages; they need high expenses and high technology, so they will take time.

It's far from easing this year. I thought that we'll have the series of roll backs but it seems that it won't be on a spree. There's another round for the price hike for this week.

So the government should initiate temporary solutions like reducing tax rates etc.

They are increasing the interest rates and that's what it should be. I just hope that most countries don't give that much aid or free money ever again because that's where the economy falls.

Look at the countries where they've got that much free, it's not sustainable but I admire those countries that are able to sustain it and gets a budget for those free money they give out.

[Wong Gendheng]

Oil will continue to rise because world needs also continue to increase, China is the largest country that requires oil, various roads to find alternatives such as electric vehicles still do not have a significant impact. The best thing to do immediately is to reduce industries that require too much oil, and can replace with more gas.

[Sithara007]

I don't know why he is doing this, the American people are also paying for that high price of fuel, not only the countries abroad. In the event that President Biden is the main cause of this price spike, then he is shooting himself in the foot because he will lose the support of the people when he runs for another term. Can you explain more?

Well.. Biden has found a short term solution. He has ordered the release of oil from the Strategic Petroleum Reserve (SPR). This is a foolish move, because the reserve need to be replenished in the short term, if it is emptied now. Biden's aim is to keep crude at a level of around $100 per barrel until the mid-term elections happen in the first week of November. Once the elections are completed, the SPR will be refilled and this will push crude towards the $150 per barrel level. If price cap is implemented on Russian oil, then it can go up even further.

[Fortify]

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.

It's nice to see prices slowly edging downwards in the last few weeks, but it's clearly due to reduced demand due to crazy inflation and the fact most countries are likely heading into a recession. This is the natural end result of massive borrowing and overspending - Covid threw things out of whack with a huge drop off and then a large rebound - but this upcoming dip has been due. The last major recession was in 2007 with the financial crisis and it is truly amazing that the economy has been able to sustain such a relatively inflated level lately, but it is time for a correction. Fuel should continue to drop if that is the case, even if Russia is still going crazy.

[Ultegra134]

We do not expect gas prices to ease this year. Because of the Russia-Ukraine war. And also the World Bank  warns the global economy may suffer 1970s-style stagflation. Even electric vehicles and green energy have their own disadvantages; they need high expenses and high technology, so they will take time.

It's far from easing this year. I thought that we'll have the series of roll backs but it seems that it won't be on a spree. There's another round for the price hike for this week.

So the government should initiate temporary solutions like reducing tax rates etc.

They are increasing the interest rates and that's what it should be. I just hope that most countries don't give that much aid or free money ever again because that's where the economy falls.

Look at the countries where they've got that much free, it's not sustainable but I admire those countries that are able to sustain it and gets a budget for those free money they give out.

Oil has been extremely volatile lately, it's a rollercoaster. Exactly 2 days ago, in 30th of August, oil had skyrocketed once again surpassing $100/barrel and going as high as $105. Two days later, despite Gazprom's announcement that it'll be cutting off supply to Germany and France, oil has crashed below $100, trending at $96/barrel (Brent oil). In my opinion, low prices (below $100/barrel) won't be sustainable, Russia is a leading giant in oil and CNG, while their supplies won't be replenished anytime soon.

I can't fathom what they were thinking when imposing such sanctions, EU's and NATO's actions are responsible for the current state in Europe, it could have been avoided. It's one of the main reasons inflation isn't going to get any better within the next few years, while we're also facing the risk of electricity and oil supply shortages within the upcoming winter.

[Sithara007]

I believe Russian war has created so much problem for the whole world. This oil crisis after Covid is not over yet.
Now in our country oil prices have reached to the highest and this is bringing everything to the extreme higher price. And Biden is very upset for the steps he is taking. He pull his forces from Afghanistan and started a cold war with Russia. Not a good move.

Biden will be 80 years old in a few months and it is rumored that he is suffering from dementia. I don't think that he is the decision maker within the US government. He may be the face of the government, but the important decisions are being taken by the far-left cabal that includes Kamala Harris and Nancy Pelosi (not to forget Hillary Clinton as well). The next POTUS elections are just two years away and it will be interesting to know who will be the nominee from the Dems. They may opt for a moderate face such as Beto O'Rourke, while Kamala/Nancy will pull the strings behind the curtain.

[DrBeer]

I believe Russian war has created so much problem for the whole world. This oil crisis after Covid is not over yet.
Now in our country oil prices have reached to the highest and this is bringing everything to the extreme higher price. And Biden is very upset for the steps he is taking. He pull his forces from Afghanistan and started a cold war with Russia. Not a good move.

Biden will be 80 years old in a few months and it is rumored that he is suffering from dementia. I don't think that he is the decision maker within the US government. He may be the face of the government, but the important decisions are being taken by the far-left cabal that includes Kamala Harris and Nancy Pelosi (not to forget Hillary Clinton as well). The next POTUS elections are just two years away and it will be interesting to know who will be the nominee from the Dems. They may opt for a moderate face such as Beto O'Rourke, while Kamala/Nancy will pull the strings behind the curtain.

Rumor has it that Putin is not a grandfather, but a grandmother with grandfather's genitals, and he also dreams of a rubber ass
But the Ministry of Terrorism of the Russian Federation, says that they have already destroyed 44 HIMARS in Ukraine out of 20 delivered. But this is official information, and of course honest

Of course, the "rumor has it" argument is very strong, it's hard to disagree! You sometimes surprise very much!

But ... Let's return to the topic of the topic and reality?

So, oil today: SPOT price of Urals - 74.02 dollars per barrel. Link to source https://ru.investing.com/commodities/crude-oil-urals-spot-futures
Trend from June 2022 to today - PRICE FALL from $100+ to $74! minus 25%!

I'm sure after this phrase you wanted to say "so how much does gas cost!" Right ? I'm sure it's true So, now the price of gas is exclusively artificially driven up by one ... let's put it mildly - an economic terrorist! They have nothing left but gas terror, because it is already much closer than on the horizon, and to be precise, the death of the economy "breathes in Russia's back" due to the loss of the European market! Russia has already “flyed” with oil, now oil is not only cheaper by 25%, almost at the level of profitability, but it is also forced to sell real oil at a price below $40 to China and India, no matter how much you would like to do otherwise!
I do not even rule out that the Kremlin terrorists will cut off the gas to Germany and France. Well, this will be a good lesson, an inoculation against venality and rash acts such as selling yourself to terrorists, and becoming dependent on mentally unbalanced regimes. But I’m sure that the winter in Germany and France, although it will be difficult, but during 2023 these countries will get off the Kremlin’s gas needle, destroy corruption ties with terrorists, and reach a stable level of providing their economy with gas, but already gas bases from terrorists

[Xampeuu]

I believe Russian war has created so much problem for the whole world. This oil crisis after Covid is not over yet.
Now in our country oil prices have reached to the highest and this is bringing everything to the extreme higher price. And Biden is very upset for the steps he is taking. He pull his forces from Afghanistan and started a cold war with Russia. Not a good move.

Biden will be 80 years old in a few months and it is rumored that he is suffering from dementia. I don't think that he is the decision maker within the US government. He may be the face of the government, but the important decisions are being taken by the far-left cabal that includes Kamala Harris and Nancy Pelosi (not to forget Hillary Clinton as well). The next POTUS elections are just two years away and it will be interesting to know who will be the nominee from the Dems. They may opt for a moderate face such as Beto O'Rourke, while Kamala/Nancy will pull the strings behind the curtain.

a decision that makes inflation higher and certainly affects the development of the world economy. Currently oil plays an important role in the distribution of all goods, and if there is an increase in oil, it will affect the price of everything. apart from political activities, of course they only think of their own benefit with various policies, and in that country it seems that they always want to be a leader for the whole world, instead of mutually beneficial cooperation, the problem that Russia is currently facing is, of course, not as easy as it seems.

[DrBeer]

News and one country that really wanted to "help" the terrorist country by buying oil from it at a dumping price - and here another fiasco awaits the terrorist country. expected

"03 September 2022 India sharply reduced purchases of Russian oil after the visit of US officials
The "Orient Express" of Russian oilmen, carrying barrels to Asia instead of Europe, continues to falter. In the week ending Aug. 26, oil supplies from Russia to Asian customers fell to the lowest level since the first month of the war, Bloomberg calculated based on tanker tracking data.

China, which began to reduce more purchases in July, was joined by India, which since spring has been regularly taking all the oil that fell under the "boycott" in Western Europe.

Over the month, the flow of Russian oil to India shrank by 40%: at the end of July it was 960,000 barrels a day, in mid-August - 740,000 barrels, and last week - 570,000.

China bought at the same time bought 810,000 barrels a day - 35% less than in early June.

Another 340 thousand barrels per day were taken out of Russian ports by tankers that did not indicate the destination. But even if all that volume ends up in Indian or Chinese refineries, shipments to Asia will be the lowest since early April (1.72 million barrels a day).

Problems in the Indian market arose for Russian oilmen after a delegation of US officials headed by Deputy Treasury Secretary Wally Adeimo, the sanctions policy coordinator in Washington, visited New Delhi.

The US offered the government of Asia's second largest economy to join the "price ceiling" for Russian oil - that is, not to buy barrels more expensive than $40-60. Nothing was publicly announced about the outcome of the talks. But according to Bloomberg, India's de facto government has said no, saying the deal needed "broader consensus."

https://www.moscowtimes.eu/2022/09/03/indiya-rezko-sokratila-zakupki-rossiiskoi-nefti-after-vizita-chinovnikov-ssha-a23878

India is a reasonable country, although some of its representatives have become victims of Russian propaganda.

[Ultegra134]

Crude oil has been extremely volatile the past few days, crashing down to $81.84/barrel of WTI crude oil and $87.64 for Brent oil, respectively. It's the lowest we've seen them so far after the start of the war in Ukraine. Natural gas has also seen a large decrease in price. In the meantime, Russia threatened to completely cut off supplies from Gazprom if sanctions aren't retracted. Personally, I don't see it happening any time soon. The West would rather see their citizens and their economies suffer instead of easing sanctions, which only lead to detrimental effects on Europe's economy and well-being while Russia scores billions in profit by selling overpriced oil to Europe and Asia.

Do you believe that we'll see a slow down in inflation if oil prices remain below $90/barrel? I'm hoping to at least see signs of relief in the gas stations, which will be worthwhile this time.

[Sithara007]

Crude oil trading at sub-90 levels is good, but let's remember that it was trading at ~$40 per barrel two years ago. And the current prices once again proves that as far as crude oil is considered, the war between Russia and Ukraine is not a major player. Before the war, crude oil was trading at $90 per barrel, and even now it is trading at the same level. On the other hand, natural gas prices went up due to the war, and there is no doubt about it. But the recent decision by OPEC+ to cut oil production will have some impact on the market in the coming weeks.

[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" 

[virasisog]

a decision that makes inflation higher and certainly affects the development of the world economy. Currently oil plays an important role in the distribution of all goods, and if there is an increase in oil, it will affect the price of everything. apart from political activities, of course they only think of their own benefit with various policies, and in that country it seems that they always want to be a leader for the whole world, instead of mutually beneficial cooperation, the problem that Russia is currently facing is, of course, not as easy as it seems.

In our country its hitting highest in the history
There is no end to it. Protests would not work until you are ashamed to get their task done

It's even uncontrolable in our country. It's the worst economic situation that we're in. Poor people are suffering and others are trying to look for extra jobs because everything is getting unaffordable including imported goods. The oil price hike is being announced each week and it's continuous. There might be rollbacks but the hikes are still higher.