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Oil price plunges on world market due to Japan Earthquake

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Oil price plunges on world market due to Japan Earthquake


according to Detroit Free Press.....
http://www.freep.com/article/20110311/BUSINESS07/110311012

Quote

Oil prices fell sharply to below $100 a barrel today after a massive earthquake and tsunami struck Japan, the world's third-largest oil consumer, triggering knee-jerk sell-offs across financial markets.

Does this mean our Petrol & Diesel price at the pump will fall?    Hmmm ..... I doubt it...  Undecided
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Re: Oil price plunges on world market due to Japan Earthquake

It can take six months for a oil price reduction to filter through to the pumps as oil companies buy well in advance Wink Sad
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geoffp0
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Re: Oil price plunges on world market due to Japan Earthquake

Don't  worry, the fat cats will milk it before they have to REDUCE prices at the pumps Angry
Geoff
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Re: Oil price plunges on world market due to Japan Earthquake

I really have to ask - WHY?  - they aren't suddenly going to stop using oil
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Re: Oil price plunges on world market due to Japan Earthquake

I agree. It does seem odd that the oil prices have dropped as a result of this ?
Possibly a knee jerk reaction and it will be back to the usual price within a couple of days.
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Re: Oil price plunges on world market due to Japan Earthquake

Quote from: Oldjim
I really have to ask - WHY?  - they aren't suddenly going to stop using oil

The answer is in the linky........
Quote

"Japan's daily oil consumption in 2009 was 4.4 million barrels and this has to be covered virtually in full by imports.
The demand for oil could be lower, at least temporarily, because of the earthquake."

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Re: Oil price plunges on world market due to Japan Earthquake

Just found this "LIVE" price chart for Various comodities.... (see list on left side of page)....
http://www.livecharts.co.uk/MarketCharts/crude.php
If you "hover" your mouse cursor, just above the (c) DUKASCOPY  you will get an "options" box in blue... click it, to set the time scale ...
minimise it and then come back to it later on, and note the changes from minute to minute ... !
geoffp0
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Re: Oil price plunges on world market due to Japan Earthquake

But on the other side of the coin, in todays paper British Gas has made a statement thus "UK gas bills could soar in the wake of the disaster, fuel prices on the wholesale markets surged almost 3% to 69.9p/therm, gas that would have come to Europe might have to be diverted to Japan."
Geoff Cry
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Re: Oil price plunges on world market due to Japan Earthquake

Yeah!  well they would say that,........ wouldn`t they....  Roll eyes

Crude Oil  (Light) price at 0800 on 10/3/2011 was   104.88 and is now (0945 12/3/2011 = 100.47    
Hmm  strange "surge" that BG have indicated  ? ? ?
Follow the prices on this link
http://www.livecharts.co.uk/MarketCharts/crude.php
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Re: Oil price plunges on world market due to Japan Earthquake

You are comparing apples and oranges - LNG and oil prices are two different things
http://www.prnewswire.co.uk/cgi/news/release?id=314547
Quote
The price of the April 2011 gas contract on the UK wholesale market rose sharply in early trading on Friday, as speculation rose that Japanese demand for liquefied natural gas (LNG) would increase following an earthquake which cut the country's nuclear power production.
The midpoint value for the NBP April '11 contract was 59.725 pence/therm as of 10:17 London time, a rise of 2.15p/th or 3.7% from Thursday, according to ICIS Heren data.
The fear is that with Japanese nuclear plants shutting, utilities in Japan will be forced to bid for extra LNG cargoes, diverting supply away from the UK and, to a lesser extent, continental Europe. The LNG would then be regasified and used as a raw material to produce electricity. While it is too early to assess the full extent of damage to Japan's generation assets, at least five nuclear plants have been shut down.
Traders said news of the Japanese earthquake was driving the price, although there was still no real clarity on the market of how much extra gas demand may come from Japan as a result.
"The UK now sources as much as 30% of its daily gas supply as LNG. This comes from large global exporting countries such as Qatar. If the price rises sharply in Japan we could see LNG diverted to that market and away from the UK," said Edward Cox, Editor at ICIS Heren.
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Re: Oil price plunges on world market due to Japan Earthquake

Lets face it guys, no matter what happens OUR prices will go UP  Sad (Now at £140.9/lt for diesel here, up 4p in last 2 weeks  Crazy)
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Re: Oil price plunges on world market due to Japan Earthquake

And we are highly unlikely to have a boycott on fuel as we simply need it and will carry on buying it. Sad
10 years ago when 4 star was around 82p/litre the idea of paying well in excess of £1.00 a litre was unthinkable.
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Re: Oil price plunges on world market due to Japan Earthquake

Two conflicting reports I have heard/read (sources unavailable cos I forgot to remember them !  Roll eyes )
One says the budget increase of 1p per litre is being cancelled..... (cos the government is nice and kind to people with not much money) ! ! ! . Grin Grin Grin
the other says that the treasury is losing money on petrol and diesel sales, because we (gullible people) are not buying so much.... therefore, they (nice kind government) are not getting so much in tax per litre, and consequently less in VAT.
my heart bleeds for them. Cry Cry Cry
itsme
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Re: Oil price plunges on world market due to Japan Earthquake

Quote
"The UK now sources as much as 30% of its daily gas supply as LNG. This comes from large global exporting countries such as Qatar. If the price rises sharply in Japan we could see LNG diverted to that market and away from the UK," said Edward Cox, Editor at ICIS Heren.

As the Utility companies keep telling as that they buy in advance can LNG be diverted and would the price rise to the customer in the UK?
johpal
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Re: Oil price plunges on world market due to Japan Earthquake

Japan's dependence on oil is going to increase in the short-to-medium term and in the very long term if they cannot recover their confidence to re-open their nuclear power stations. Some speculating sharks out there must be salivating. In the meantime, what's become of the situation in Libya? Promising to help stabilise oil prices by increasing output, the Saudi's are facing their own (much under-reported) civilian unrest; please don't delude yourselves that the Saudis themselves run the oil refineries! With the expat population leaving for home, it will require the last one to leave to switch off the lights! As long as we need oil, people are prepared (and able) to make a profit.
The old Dutch (and East Anglian) landscapes were cluttered with windmills. Modern wind turbines don't appear so "rustic", but if I could afford to plant one next to my house and plug my car into it, to charge, b****r what the neighbours think of the view!