How long will oil stay so cheap?

[GASWAGON]

Petrol prices are back down near the $1.00 per litre mark again which is just fantastic at the moment.

I am wondering how long all this cheap crude oil is going to last?

Will it be 6months or a year or will it stay as cheap as it is for many years ahead?

Would be great news if its going to stay at rock bottom for a few years!

[Trump]

As long as the US is pumping record amounts of shale oil, they will stay low.

[Junkyard-Dog]

I notice that Iraqi government forces just declared that they've won a key battle against ISIS for the reclamation of Fallujah.

[wozman]

$118.8 here

[GASWAGON]

Originally Posted by wozman

$118.8 here

I just filled up with E10 @$1.02 per litre.

Cant believe how cheap petrol AND diesel are still.

Too good to be true!

[wodahs]

Originally Posted by wozman

$118.8 here

can find ulp @ around 1.07 here tomorrow

[2011G6E]

We were told in the seventies that the oil would "all be gone" by the late 1990's. Then in the eighties we were told "by shortly after 2000" it would all be gone.
Now we're well into the start of the 21st century and there's no end in sight...constant new discoveries are being made, oil that was once unrecoverable is now easily extracted, cars are more and more fuel efficient and powerful than we ever imagined.

Not to mention...what do people think powers world commerce going all over the globe in massive container ships and air freight? Hint: it's not unicorn flatulence and fairy dust...

Without even getting into the worlds "virtually inexhaustible" supplies of coal...many centuries worth just under Queensland even taking into account increasing future demand. Coal can be processed into fuel as well.

[Qwerty321]

Pretty much what 2011G6E said. Humanity is going to keep churning out oil (natural or synthetic) from literally every nook and cranny until global warming has this planet looking like Mars, and when that day comes we'll all either be living in some futuristic dome cities or colonising other planets and extracting their resources.

I think oil will remain "cheap" for a while to come. The thing with oil is as the price goes up, sales goes down, and the free market is going to strike the perfect balance that gives the companies the largest profit. So ultimately oil's going to end up teetering on that exact price where we'll all complain about it, but it's not costly enough to stop the general mainstream public buying it and using it. Of course accounting for inflation, the price will always go up, just our salaries will go up to match it.

[malazn mafia]

Wondering how long LPG prices will stay the way they are. They are at 2007-2008 levels now and seem to be falling. In 2013-14, they became so expensive that gas kits were basically fit for the garbage tip as there was hardly any advantage vs running 91 ULP.

[GASWAGON]

Originally Posted by malazn mafia

Wondering how long LPG prices will stay the way they are. They are at 2007-2008 levels now and seem to be falling. In 2013-14, they became so expensive that gas kits were basically fit for the garbage tip as there was hardly any advantage vs running 91 ULP.

Yes bulk propane and butane prices are presently the cheapest they have ever been in the last 10 years.

Pump price for LPG should be around the 40c mark but for some reason its not?

And with petrol/diesel being so cheap at the moment its surely not doing the LPG industry any favours.

Oh well i'm just happy that thers so much crude oil available as I presently drive a BF I6 which is great on fuel anyways but i still like cheap petrol.

[GASWAGON]

O.k so it sounds like the entire planet has cheap petrol/diesel for many years to come.......Yeehaa.

That really makes me happy.

And ye climate change is just a load of bollocks!!!

[new2ford]

Paid $1.45 in Sydney this afternoon, so the answer to the thread title is "one day". Time to close the thread!

[Qwerty321]

Originally Posted by new2ford

Paid $1.45 in Sydney this afternoon, so the answer to the thread title is "one day". Time to close the thread!

I consider anything less than $2 a little to be cheap. I still remember when I got my first car and started driving 3 years ago the price of 91 octane was about $2.10 a litre and my ol Lexus insisted on atleast 95 octane. Considering the servos in my neighbourhood only did 91 or 98, I was forking out about $150 for a full tank and that doesn't last very long when you have a 3L V6 that loves the high revs 😂

[Hardtopxb]

The Arab suppliers need to sell oil at whatever price they can affordably sustain. At the moment the price per barrel is low because of supply outside of the middle east.. Period.

[b0son]

Originally Posted by Hardtopxb

The Arab suppliers need to sell oil at whatever price they can affordably sustain. At the moment the price per barrel is low because of supply outside of the middle east.. Period.

Some politicking going on there? Is this largely US oil?

[Junkyard-Dog]

Originally Posted by b0son

Some politicking going on there? Is this largely US oil?

No, they just think it is.

[GASWAGON]

ULP has just jumped 30c per litre overnight in Melbourne.

Its now around $1.30 per litre.

Anyone know why this has happened?

[mik]

I used to always think when hearing the doom stories about oil that it will price us motorists out of owning a car , but .......... there is absolutely no value in it for oil/fuel companies if people stop buying their product , and as the world economy imo is teetering on the knifes edge of recession imo once again , and also there is a lot of uncertainty around the globe which can lead people to keep saving pennys rather than spending them on unnecessary stuff like travel , etc ,etc , i doubt that we will see the bad old days of near $ 2.00 a litre for some time , unless some out of the ordinary event occurs .
That is my take on it anyway .

[GASWAGON]

Originally Posted by mik

I used to always think when hearing the doom stories about oil that it will price us motorists out of owning a car , but .......... there is absolutely no value in it for oil/fuel companies if people stop buying their product , and as the world economy imo is teetering on the knifes edge of recession imo once again , and also there is a lot of uncertainty around the globe which can lead people to keep saving pennys rather than spending them on unnecessary stuff like travel , etc ,etc , i doubt that we will see the bad old days of near $ 2.00 a litre for some time , unless some out of the ordinary event occurs .
That is my take on it anyway .

Yes the world is on the edge of a global wide recession.

Thats why i was so surprised at the present 30c per litre jump for ULP.

Hopefully it does'nt last very long and we will be back at $1.00pl very soon?

[bobthebilda]

Cant remember petrol prices being this cheap for a while now. Most stations around Adelaide have unleaded around the 93 cents a litre, and Costco has it down to 87 cents a litre. With excise and GST accounting for about 49 cents a litre, they are just about giving it away these days.

[66 STANG]

I am holidaying in the US at the moment. Price of fuel here can be as low as $1.69/Gal, which I think equates to around US 40c/litre (maybe 60c Aus / litre?). Cost me $30 to fill the car up yesterday (about 70-80 litres?). No wonder they don't mind driving big gas guzzlers over here!!

[GASWAGON]

Just seen a pic in the LPG section of a United servo sign in Geelong with E10 @ 97c and get this, LPG @ 39.9c.

Now thats bloody cheap buy todays standards!!!!!!!!!!!

[Trump]

With crude inventories being the highest on record, prices will not only stay cheap but will fall in the medium term.

[GASWAGON]

Originally Posted by Loud_Noises

With crude inventories being the highest on record, prices will not only stay cheap but will fall in the medium term.

Gees that good news for consumers then.

[SumoDog68]

Originally Posted by CoolBFWagon

Gees that good news for consumers then.

Except for the fact that the oil companies are not passing savings on - bowser prices should be lower than they are.

[fred ford]

Just wait till the oil price goes back to what it was a couple of years back, then we will know how much fuel costs!

[castellan]

Originally Posted by SumoDog68

Except for the fact that the oil companies are not passing savings on - bowser prices should be lower than they are.

One has to remember the Aussie Dollar is lower now as well.

As for the cheap oil I think it has more to do with the market, the middle east can cut the oil price and that makes the west pumping oil useless as, they face bankruptcy if it keeps going like this and it will destroy our western investments in oil and then the meddle east could just buy our western investments for bugger all down the track.

One thing I don't like is the stations fluctuation on the cycle of like 20 cents a litre and that's a joke.

I think it's about the meddling east is at war with the west and they have the upper hand at play, as they are just so wealthy that they could destroy the west economy, if the west does not play it there way, our governments have let them in the door, so they could own the deed to your house and car etc.
So we have to bow down to every whim and now are bringing in there laws over ours, because they are set on track to be our masters and that's why our PM is so back peddling on every issue that they back down to become a lap dog.

[Dauphin]

It was a nice change to fill up at 96 cents today and see more litres than dollars for a change.

[Dauphin]

Petrol has risen almost 30 cents a litre here in Melbourne.

[Trump]

Originally Posted by Dauphin

Petrol has risen almost 30 cents a litre here in Melbourne.

It's profit taking, oil tanked again overnight.