Petrol prices

[Whitespirit66]

Not long ago, I was putting £50 of diesel in the van each week. Now, the same amount lasts me 1 1/2 weeks.

Possibly USA has got together with the Arabs to keep oil prices low to cause a lot of pain to Russia. The Rouble is in freefall.

 

[ladylola]

Probably? Almost certainly the case , can't have people willing to trade oil in something other than Dollars can we?
WTI at $55.91

 

[EFLImpudence]

I thought the reduction was due to (or helped by) the U.S. being self-sufficient again.

 

[ladylola]

Up to a point. The Americans have increased production and also the Saudis . One train of thought is to try to break the BRICS and their plans to divest themselves from the petrodollar which it may well do . Reagan is said to have used the same tactics to break the Soviet Union's economy previously. It could of course backfire with companies failing. For example http://www.abc.net.au/news/2014-12-11/oil-price-drop-claims-first-wa-victim-red-fork-energy/5962020
In our own country inflation has dropped to only 1% and may fall lower prompting concern for investors
http://www.bbc.co.uk/news/business-30493967

 

[EFLImpudence]

This is just part of the economics nonsense.

A little while ago there was talk that the interest rates would have to rise because inflation was rising above the forecast acceptable figure - solely due to the increase in oil prices and nothing to do with wages or increased demand.
Quite the opposite because it reduced our spending power.

Now inflation is becoming too low - solely due to the reduced price of oil.

The U.S. has increased production because they have discovered enough new supplies for their needs and therefore do not have to import any.

 

[jockscott]

I thought the reduction was due to (or helped by) the U.S. being self-sufficient again.

It's all a plan to break Russia. I can't see it lasting though. By the end of next year petrol prices will be through the roof.