BS: Oil prices/ Dollar exchange rate

Subject: BS: OIl prices/ Dollar exchange rate
From: GUEST,Mad Jock
Date: 09 Nov 07 - 05:53 AM

Can someone explain that if we get over $2 to the pound and oil price is high why petrol prices are going up?


ie if my pound should get more dollars and therefore it gets more oil so the price should stay low!.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: eddie1
Date: 09 Nov 07 - 06:01 AM

Don't be stupid Mad Jock!
What youare saying makes far too much sense to apply to international high finance.

Eddie

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: The Fooles Troupe
Date: 09 Nov 07 - 08:46 AM

Yeah. I'm certainly glad I'm not an Economist, or I'd think I understand all this nonsense too!

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: GUEST,ALCAN1
Date: 09 Nov 07 - 10:21 PM

Its a very simple question and a simple answer. The oil is priced in US dollars yes. Which means the price of crude is going DOWN for 6.5 billion people around the world while its increasing by over 15% for Americans because of the decline in the dollar.

Gas and other petro products are rising in certain parts of the world (mainly Europe) Becaus ethe US has lost over 500 oil refineries over the last 10 years. The US now IMPORTS more of the refined product (gas, etc) then the raw material. It put a strain on the capacity of the refineries in Europe and the rest of the world. Simple supply and demand. If Americans are buying the refined product in other countries then that takes away from the total output by that country. The price goes up where that capacity is strained.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: Teribus
Date: 10 Nov 07 - 05:30 AM

Well explained GuestALCAN1.

It does rather put a dint into the arguements of those who subscribe to the machinations of evil mega-corporations who control everything and whose sole object in life is to enslave the populace of the world and march them into concentration camps. If such were the case and they did control everything I think of quite a large number of preferred scenarios to the one now ppresenting itself.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: Little Hawk
Date: 10 Nov 07 - 09:28 AM

Interestingly enough, the gas prices are staying relatively low in Canada, as compared to last year. I would assume that that is, again, because the US dollar has sunk in value in regards to the Canadian dollar, and because Canada is readily able to supply much of its own oil needs. (or I assume so...)

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: GUEST,ALCAN1
Date: 11 Nov 07 - 12:17 PM

Canada exports as much as it Imports. But yes you are correct. When the price of oil was at $80 a barrel in US dollars it cost the companies in Canada $88 Canada dollar. Today the price of oil is about $96 US dollars and now that the Canada dollar is now worth more then the US dollar after you factor in the rate of exchange, it now costs Canada $89 Canada Dollard to buy 1 barrel of oil at $96 USD. that means that the price in US dollars has gone up by 20% since the price of oil was at $80 US yet in Canada the price increase has only gone up 1.14% because of the decline in the dollar. When you factor in inflation and other economic factors Canada now pays less for that very same oild at $96 USD then they were paying when the price was at $80 USD.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: Ebbie
Date: 11 Nov 07 - 02:06 PM

I heard the other day that the average price of gas at the US pump right now is hovering around $3.00. Ours in Juneau, Alaska are at $3.49 and $3.69. Somebody out there isn't paying their share.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: Peace
Date: 11 Nov 07 - 03:09 PM

Can someone explain that if we get over $2 to the pound and oil price is high why petrol prices are going up?

Our price is $.99/litre.

There are 3.785 litres in an American gallon, so we pay--assuming exchange is equal--$3.75 if we bought gas in the US. In Britain, we'd pay $4.50 because there are 4.546 litres in an imperial gallon.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: GUEST,ALCAN1
Date: 11 Nov 07 - 04:06 PM

Our price is $.99/litre.

There are 3.785 litres in an American gallon, so we pay--assuming exchange is equal--$3.75 if we bought gas in the US. In Britain, we'd pay $4.50 because there are 4.546 litres in an imperial gallon.

That means Canada is paying $3.53 USD for 1 gal of gas. The current exchange rate is $1.06 CAD = $1.00 USD. As I said before the US dollar is declining and will continue to do so. The more it declines the more the price in the US will increase. In other parts of the world it will stay the same or decline as the USD declines. What people need to understand is the USD is declining for a couple reasons. The main reason is there is an OVERSUPPLY of US DOLLARS on the world market. When Europe went to the Euro Dollar...prior to that, ALL INTERNATIONAL MONEY TRANSACTIONS were done in USD. When the Euro dollar became the standard all that US currency that had been required to conduct those transactions among the EU countries was no longer needed. As a result 1 of 2 things had to occure.

1..either that US currency had to come back to the US and be pooled into the US money supply within this country thereby increasing inflation and prices. (remember inflation is an increase in the money supply. Its not the rising of prices. The rising of prices is the effect of inflation not the cause. And 90% of the US currency is held overseas and not counted in the domestic money supply.)

or

2..Devalueing the US dollar against the other curriencies around the world to offset the oversupply of US currency on the worldwide market.

This devaluing started shortly after the Euro dollar was introduced and was accelerated whe Iraq started pricing oil in its oil for food program in Euro dollars. This was the real reason why we went into Iraq several years ago. If the US had allowed that to remain in place it would have set a precident and further tumbled the dollar. The falling of the dollar was and is unavoidable. The only thing that will save it is to raise interest rates to levels we had in the late 1970. Which is where we are headed. Even Allen Greenspan in his book is predicting the 10 year bond interest yeild to be double digits before the end of the decade.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: Peace
Date: 11 Nov 07 - 04:09 PM

Thanks.

However, I'm still payin' $.99/litre and that's lots of profit for various oil companies.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: Jim Lad
Date: 11 Nov 07 - 07:02 PM

It's an honest mistake. I'm sure they'll fix it when someone points it out.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: Peace
Date: 11 Nov 07 - 07:04 PM

LOL

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: Donuel
Date: 11 Nov 07 - 08:19 PM

http://www.youtube.com/watch?v=nj9KHJRRUbQ

will give some clarity.








Do you think it is done deliberatly or is it the consequence of robbing the treasury with borrowed cdollars from China?

PS
remember that inflation always further distances the wealthy from the middle class.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: Little Hawk
Date: 11 Nov 07 - 11:35 PM

Good link, Donuel. Good posts, ALCANI. Thanks.

"This devaluing started shortly after the Euro dollar was introduced and was accelerated whe Iraq started pricing oil in its oil for food program in Euro dollars. This was the real reason why we went into Iraq several years ago. If the US had allowed that to remain in place it would have set a precident and further tumbled the dollar."

Correct. It's the first time I've heard anyone mention that in a good long while. It's the story that no one seems to want to talk about.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: Little Hawk
Date: 12 Nov 07 - 07:48 PM

Volume. Volume as compared to demand is always the key to pricing. Something that there is only one of in the entire world becomes incredibly valuable. Something as common as grass becomes worth very little. Then too, the market will bear whatever the customer is willing (and able) to pay. How much are you willing and able to pay for soda pop?

In my case, nothing. I don't drink soda pop anymore. They'd be out of business if most people made that choice.

Subject: RE: BS: OIl prices/ Dollar exchange rate
From: ragdall
Date: 12 Nov 07 - 10:19 PM

That last post was from me without a cookie. Sorry.

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: Bee
Date: 13 Nov 07 - 12:23 AM

Was $1.11 in Nova Scotia Friday.

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: GUEST,Mad Jock
Date: 13 Nov 07 - 06:57 AM

Still none the wiser after all that info. Maybe Im just thick. Might as well run for president!

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: Peace
Date: 04 Mar 08 - 01:08 PM

Are you running? I need to know.

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: Q (Frank Staplin)
Date: 04 Mar 08 - 08:01 PM

Alaska has the lowest combined state and federal tax/gallon, 26.4 cents, but some of the highest transportation costs, hence gasoline is expensive.
California has high combined state and federal tax/gallon, 50.4 cents, but transportation is relatively low.
Some cities have a separate tax which is added.
Add sales taxes.

Most of the swings in price are the result of the price per unit in commodities trading on the NYMEX exchange in the U. S. The price depends on world supply and demand.

In Canada, taxes are about 1/3 of the cost/gallon. An interesting chart or two are found here: Oil and Gas Prices

One might conclude from these that Canadians pay more for the privilege of buying gasoline, despite the fact that Canada produces most of the gasoline it uses.

From another thread, updating a figure by ALCAN1:
Canada exports 1.77 million bpd, but imports 850000 bpd (to supply some East coast areas). 2006 figures from Canadian Assn. Petroleum Producers.

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: Donuel
Date: 05 Mar 08 - 05:56 PM

the south african Rand is still favorable to Americans at 7 R per $.

bid and buy purchases even after shipping will save a lot of $

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: Geoff the Duck
Date: 06 Mar 08 - 04:25 AM

I'm paying £1.10 for a litre of diesel fuel. It doesn't smell od petrochemical dieasel and is probably made from rapeseed oil. I see absolutely no reason why the price I pay for it goes up when crude oil prices change. It isn't mad from the stuff.
Quack!
GtD.

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: GUEST,CrazyEddie
Date: 06 Mar 08 - 04:31 AM

So how many "US Euros" do you get for a "Euro dollar" these days?

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: Backwoodsman
Date: 06 Mar 08 - 05:42 AM

"In Britain, we'd pay $4.50 because there are 4.546 litres in an imperial gallon."

Wrong. In Britain you'd pay about £4-77 a gallon (that's about 9 US dollars). As someone said earlier, "Someone isn't paying their fair share". Count your blessings and stop whinging.

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: Q (Frank Staplin)
Date: 06 Mar 08 - 12:27 PM

OPEC has announced it is not going to increase production, so the traders are sending the price even higher. All OPEC countries have to do is keep demand above supply, and the dollars roll in.

Go, traders! Canada needs the dollars.

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: Peace
Date: 06 Mar 08 - 01:31 PM

"Give me your tired, your poor,
Your huddled masses yearning to breathe free"

If they ain't when you send 'em, they will be when the oil companies are done with them.

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: Amos
Date: 31 May 08 - 12:03 AM

Business Week provides a comparison among 24 countries as to the price of a gallon of gasoline. Venezuela, and all the Muslim countries are from 1/10 to 1/8 the price in Europe (around 80 cents or a dollar compared to 8 dollars). Perhaps the OPEC machine is just strangling the Great Satan, I dunno. But the difference is pretty dramatic. Transport costs must be huge.

This is one dirty needle we're addicted to though. I'll say that.


A

Subject: RE: BS: Oil prices/ Dollar exchange rate
From: GUEST,Arkie
Date: 31 May 08 - 03:19 PM

I am curious how many times a barrel of petroleum is sold from the time it leaves the oil field to the time it arrives at the refinery and how many times it is sold from when it leaves the refinery until it arrives at the filling station pump. I am also wondering how many of those sales are necessary for getting petroleum from the field to the consumer and how many of those sales are contrived to profit an unnecessary "middle man". It was those unnecessary middle sales that undid the housing industry.

The law of supply and demand makes sense. When it works as it should business adjusts and consumers adjust. When supply is manipulated out of greed or whatever reason the economic system is put in jeopardy.