Friday, October 10, 2008

Oil and Petrol

As the oil price continues to fall (today it virtually collapsed below $80 a barrel) the stubbornly high price of petrol seems ever less justifiable.

I know there is a time lag but funny how the time lag is very short when oil rises but very long when oil falls !

Oil is now little more than half the price of its peak (at $147 a barrel). In London at least you are doing well to find petrol that has fallen more than 10 % from its peak (currently around the £1.06/£1.07 a litre mark).

It's interesting to note that earlier this year the potential for $200 a barrel oil was discussed. This all seems quite a way off now.

At least one economic reason to be cheerful....

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