Crude oil prices dropped

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Batman

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#243132 28-Nov-2018 10:02

I read on CNN that crude oil prices have dropped 30%.

But not seeing it at the pump are we ....

Maybe the AA will read GZ and make a small fuss.

(Yes I know that we should all be driving electric cars, waiting for them to fall in price too, with brakes that work - but all your veges and iphones are still transported using fossil fuel.)

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#2135764 28-Nov-2018 10:07

This has always irked me...the immediate increase at the pumps when crude values increase, but the massive lead time to get reductions to the pump.

I know that the fuel in the tanks is bought at a higher rate, but they also hedge (therefore mitigating a lot of the increase in cost), plus they don't allow for the cheaper fuel being in the tanks when they increase the prices.

Fuel is and always has been a rort, but we need it and we're at the mercy of the Oligarchs...

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#2135795 28-Nov-2018 10:10

But not seeing it at the pump are we

Where do you live??

in Wellington, 91 has gone from 248.9 at the beginning of October to 209.9 today....

As for the AA commenting, the most recent comment on their petrol watch blog says

"Another price cut, the 12th in a straight row in the past month, with fuel prices down 4 cents per litre (cpl). Unsurprisingly, the reduction reflects continual drops in commodity prices, plus the strengthening NZ$, which is now at the highest level since August. This brings petrol prices to the lowest level seen since April, and diesel the lowest since June."

https://www.aa.co.nz/cars/motoring-blog/november-2018-petrol-and-diesel-prices/

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#2135797 28-Nov-2018 10:13

I think Auckland has dropped pretty significantly over the last 2-3 weeks? - near me led it seems to be led by the Waitomo on Manukau road.

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ockel

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#2135799 28-Nov-2018 10:19

Prices have dropped substantially.

Oil peaked in October at USD85/bbl. Now its at USD60. MBIE has the oil price at USD67/bbl (given the lag on data) down 22%

Petrol peaked at 233 (discounted retail price c/-MBIE 1 week later. Petrol last week at 202.

More importantly retail price ex tax peaked at 128. Last week at 101. Down 21%.

Its just that no one is talking about it cos its not newsworthy unless someone can be blamed.

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#2135805 28-Nov-2018 10:27

I was shocked when I came home from Europe to see the petrol had come down significantly. I had filled up a few days before leaving at $2.489/litre (91) and it was $2.129 when I got home (and is now $2.099)

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#2135846 28-Nov-2018 11:26

Prices have come down in Palmy, but there's a lot more variability around these days.

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#2135872 28-Nov-2018 11:59

I'd love to be able to buy Diesel in bulk, without actually storing it. Come to an arrangement with my service station that if I pay for say, 1000 Litres now, all up front, and then refill my car until I use it all.

tdgeek

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#2135933 28-Nov-2018 12:43

ockel:

Prices have dropped substantially.

Oil peaked in October at USD85/bbl. Now its at USD60. MBIE has the oil price at USD67/bbl (given the lag on data) down 22%

Petrol peaked at 233 (discounted retail price c/-MBIE 1 week later. Petrol last week at 202.

More importantly retail price ex tax peaked at 128. Last week at 101. Down 21%.

Its just that no one is talking about it cos its not newsworthy unless someone can be blamed.

Maybe as the Govt has been shaking its fist at fuel pricing, so they are hiding, aka making fuel prices correct for a change?

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#2135940 28-Nov-2018 12:56

So I am sure people know that there are different types of oil and it is used for different purposes. From memory the one that affects vehilce fuel prices is light distilates (grade 1 and 2 fuel oils).

I am not sure if we still get our fuel from Singapore or not, but from September through to november I think prices went up quite a bit. Also not sure what kind of futures trade is done - so how far in advance the appropriate fuel is purchased.

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Lastman

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#2135941 28-Nov-2018 12:56

Gulll has been $1.99 in Hastings recently and others matching if you allow for card discounts.

ockel

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#2135947 28-Nov-2018 13:14

tdgeek:

ockel:

Prices have dropped substantially.

Oil peaked in October at USD85/bbl. Now its at USD60. MBIE has the oil price at USD67/bbl (given the lag on data) down 22%

Petrol peaked at 233 (discounted retail price c/-MBIE 1 week later. Petrol last week at 202.

More importantly retail price ex tax peaked at 128. Last week at 101. Down 21%.

Its just that no one is talking about it cos its not newsworthy unless someone can be blamed.

Maybe as the Govt has been shaking its fist at fuel pricing, so they are hiding, aka making fuel prices correct for a change?

The Govt jawboned the petrol retailers in week 41 of the calendar year. At that time the importer margin was 33.9cps. The margin INCREASED after Ardern made her statement. I dont think the fist shaking had any effect. Fuel prices are collected and collated by MBIE and so arent hidden (and the methodology hasnt changed). Margins peaked in week 43 and have been declining since (as with the price).

The retailer margin % currently sits at 30% - higher than the period that Ardern made her opinion known. Govt - action? hell no.

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Batman

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#2135966 28-Nov-2018 13:51

wellygary:
But not seeing it at the pump are we

Where do you live??

in Wellington, 91 has gone from 248.9 at the beginning of October to 209.9 today....

As for the AA commenting, the most recent comment on their petrol watch blog says

"Another price cut, the 12th in a straight row in the past month, with fuel prices down 4 cents per litre (cpl). Unsurprisingly, the reduction reflects continual drops in commodity prices, plus the strengthening NZ$, which is now at the highest level since August. This brings petrol prices to the lowest level seen since April, and diesel the lowest since June."

https://www.aa.co.nz/cars/motoring-blog/november-2018-petrol-and-diesel-prices/

Hmm 50c sounds like a good 30% off actual fuel cost minus taxes. I'm in South Island

Linuxluver

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#2135980 28-Nov-2018 14:20

Batman:

I read on CNN that crude oil prices have dropped 30%.

But not seeing it at the pump are we ....

Maybe the AA will read GZ and make a small fuss.

(Yes I know that we should all be driving electric cars, waiting for them to fall in price too, with brakes that work - but all your veges and iphones are still transported using fossil fuel.)

It takes weeks or months for new crude to be pumped, transported, refined, shipped onward...and then shipped finally to NZ.

The lag would be far more than just days or a few weeks.

Your brakes comment assumes petrol cars never have recalls for defects. You know that's nonsense.

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Linuxluver

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#2135983 28-Nov-2018 14:25

ockel:

...

The Govt jawboned the petrol retailers in week 41 of the calendar year. At that time the importer margin was 33.9cps. The margin INCREASED after Ardern made her statement. I dont think the fist shaking had any effect. Fuel prices are collected and collated by MBIE and so arent hidden (and the methodology hasnt changed). Margins peaked in week 43 and have been declining since (as with the price).

The retailer margin % currently sits at 30% - higher than the period that Ardern made her opinion known. Govt - action? hell no.

Oil companies in NZ have never, ever taken any notice of what any government says. Not in the 35 years I've been paying attention anyway.

The price of oil has been a political football for decades. Just stop using the stuff. I stopped 2.5 years ago. Once you've done it......you realise it's not just about transport. It's also about not being held hostage to every manufactured "crisis" in the northern spring to drive the price up during the North American and European summer holidays.

For many people there's no need or it anymore. Finally....and they are unhooking from petrol dependency. :-)

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wellygary

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#2135992 28-Nov-2018 14:45

Linuxluver:

Batman:

I read on CNN that crude oil prices have dropped 30%.

But not seeing it at the pump are we ....

Maybe the AA will read GZ and make a small fuss.

(Yes I know that we should all be driving electric cars, waiting for them to fall in price too, with brakes that work - but all your veges and iphones are still transported using fossil fuel.)

It takes weeks or months for new crude to be pumped, transported, refined, shipped onward...and then shipped finally to NZ.

The lag would be far more than just days or a few weeks.

But MOPS tracks BRENT pretty tightly i.e gone from 90 USD to 67USD in the last 8 weeks, so you don't need to worry about the crude processing lag...

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