Ramarena Posted January 7, 2016 Share Posted January 7, 2016 Trading suspended in China again today, Brent Crude tumbles to $32.25 this morning, FTSE could well drop through the 6000 barrier, this seems to have stirred the government with Osborne coming out of hiding to tell us the economy faces “dangerous cocktail of new threats”. Supposedly Asia's stockmarkets suffered $1.2 trillion in losses today, wow good job it's all magic money eh. Link to comment Share on other sites More sharing options...
Ramarena Posted January 7, 2016 Share Posted January 7, 2016 24 minutes ago, Ramarena said: Trading suspended in China again today, Brent Crude tumbles to $32.25 this morning, FTSE could well drop through the 6000 barrier, this seems to have stirred the government with Osborne coming out of hiding to tell us the economy faces “dangerous cocktail of new threats”. Supposedly Asia's stockmarkets suffered $1.2 trillion in losses today, wow good job it's all magic money eh. Just realised that China's trading was suspended after just 30 mins. Must be the shortest trading day on record? Link to comment Share on other sites More sharing options...
GeneralRam Posted January 7, 2016 Share Posted January 7, 2016 I'm starting to kick myself for sticking money into a FTSE tracker each month for the past 18 months. I can't see the stock market going near 7,000 again anytime soon Link to comment Share on other sites More sharing options...
eddie Posted January 7, 2016 Share Posted January 7, 2016 Osborne to say 'we are all in this together' and announce further cuts for the poor and bigger bonuses for bankers in 5....4....3.... Link to comment Share on other sites More sharing options...
LesterRam Posted January 7, 2016 Share Posted January 7, 2016 come on George lets now tell the truth, its time Link to comment Share on other sites More sharing options...
Wolfie Posted January 7, 2016 Share Posted January 7, 2016 Looks like he's getting his excuses in early for missing this year's borrowing target. Funny how only a few weeks ago (at the Autumn Statement), he said that everything was rosy with the UK economy. Link to comment Share on other sites More sharing options...
Shang Posted January 7, 2016 Share Posted January 7, 2016 A bigger recession than last within this year or next, Conservatives won't be able to blame Labour for this! Link to comment Share on other sites More sharing options...
LesterRam Posted January 7, 2016 Share Posted January 7, 2016 the FTSE taking another hiding today, if you bought a house since the last recession your going to hurt... Link to comment Share on other sites More sharing options...
Ramarena Posted January 7, 2016 Share Posted January 7, 2016 1 hour ago, eddie said: Osborne to say 'we are all in this together' and announce further cuts for the poor and bigger bonuses for bankers in 5....4....3.... Indeed. Did you see the footage from PMQ's yesterday? Osborne looked a mess. I wonder if he's been handed some worrying economic news? Link to comment Share on other sites More sharing options...
Ramarena Posted January 7, 2016 Share Posted January 7, 2016 The pound is now dropping as well (that said it's been slowly sliding for months), currently at $1.456. If it eventually get's down to $1.40 territory then there could be big problems. Link to comment Share on other sites More sharing options...
LesterRam Posted January 7, 2016 Share Posted January 7, 2016 3 minutes ago, Ramarena said: Indeed. Did you see the footage from PMQ's yesterday? Osborne looked a mess. I wonder if he's been handed some worrying economic news? he knows he was in the **** before he took office, ITK Link to comment Share on other sites More sharing options...
Ramarena Posted January 7, 2016 Share Posted January 7, 2016 1 hour ago, Wolfie said: Looks like he's getting his excuses in early for missing this year's borrowing target. Funny how only a few weeks ago (at the Autumn Statement), he said that everything was rosy with the UK economy. Yesterday Cameron was in the Commons crowing about our strong economy, what a difference 24 hours makes to people with their heads in the sand. Link to comment Share on other sites More sharing options...
LesterRam Posted January 7, 2016 Share Posted January 7, 2016 I have a strong company once I have cooked the books, we pay people tax credits to go to work because they don't earn enough, is this what a strong economy looks like? Link to comment Share on other sites More sharing options...
ValeRam Posted January 7, 2016 Share Posted January 7, 2016 Can someone please help me understand a couple of things about the oil price situation : - I read that the reason for the current low price is because there is over-supply, due to a series of reasons including Saudi's objective of retaining market share, various political factors (Saudi v Iran), a desire to drive out US tracking, general world economics slowdown etc etc. My question is : If there is over-supply, surely this is just a temporary thing and a fabricated state of affairs that if anything is harming some of the main protagonists who promote it. In which case, hasn't the movement in price ultimately got to be upwards, and couldn't that happen really quite soon (e.g. if Saudi decides to change policy). Cant't quite understand the analysists who say they could stay low for ages. - the other one is the old chestnut about forecourt fuel prices. Why havnt they fell by anything like the proportional fall in oil prices. Surely some one is making a huge pile of money out of this at the expense of the consumer ? Apologies for the naivety and lack of understanding of the oil market over the last 75 years !! Link to comment Share on other sites More sharing options...
Wolfie Posted January 7, 2016 Share Posted January 7, 2016 7 minutes ago, ValeRam said: Can someone please help me understand a couple of things about the oil price situation : - the other one is the old chestnut about forecourt fuel prices. Why havnt they fell by anything like the proportional fall in oil prices. Surely some one is making a huge pile of money out of this at the expense of the consumer ? Most of the forecourt price is tax. Fuel Duty plus VAT. Isn't it about 70-odd pence a litre in total?. Link to comment Share on other sites More sharing options...
Ramarena Posted January 7, 2016 Share Posted January 7, 2016 21 minutes ago, ValeRam said: Can someone please help me understand a couple of things about the oil price situation : - I read that the reason for the current low price is because there is over-supply, due to a series of reasons including Saudi's objective of retaining market share, various political factors (Saudi v Iran), a desire to drive out US tracking, general world economics slowdown etc etc. My question is : If there is over-supply, surely this is just a temporary thing and a fabricated state of affairs that if anything is harming some of the main protagonists who promote it. In which case, hasn't the movement in price ultimately got to be upwards, and couldn't that happen really quite soon (e.g. if Saudi decides to change policy). Cant't quite understand the analysists who say they could stay low for ages. - the other one is the old chestnut about forecourt fuel prices. Why havnt they fell by anything like the proportional fall in oil prices. Surely some one is making a huge pile of money out of this at the expense of the consumer ? Apologies for the naivety and lack of understanding of the oil market over the last 75 years !! Over supply. Currently the world is producing more oil than it uses, pretty much all of the worlds storage capacity is now full, we now have a situation where tankers are being anchored off-shore, as there is no-where for them too unload. Until this over supply is cut then prices will continue drop, regarding the future Iran is yet to come online in the global market, they should do this month adding to the oversupply pushing prices down further, or so the theory goes. In terms of forecourt prices, most of them are taken up in tax so there's only so far the companies can drop them, the price is also affected by companies buying patterns, many companies buy fuel in advance, thus at a higher price which translates into a slower price reduction at the pump. The only thing that looks like pushing oil prices back up at present is conflict between Saudi Arabia and Iran. Link to comment Share on other sites More sharing options...
Wolfie Posted January 7, 2016 Share Posted January 7, 2016 9 minutes ago, ValeRam said: Can someone please help me understand a couple of things about the oil price situation : - I read that the reason for the current low price is because there is over-supply, due to a series of reasons including Saudi's objective of retaining market share, various political factors (Saudi v Iran), a desire to drive out US tracking, general world economics slowdown etc etc. My question is : If there is over-supply, surely this is just a temporary thing and a fabricated state of affairs that if anything is harming some of the main protagonists who promote it. In which case, hasn't the movement in price ultimately got to be upwards, and couldn't that happen really quite soon (e.g. if Saudi decides to change policy). Cant't quite understand the analysists who say they could stay low for ages. I'm not an expert on this but was reading an interesting article the other day, which was saying that the oversupply in world oil is getting worse because countries like Russia are having no choice but to increase their oil output in order to protect their total revenues and govt budgets. Unless Opec cut back output (which they've said won't be this year) or global demand increases (unlikely in short-term), the oil price will stay low. Link to comment Share on other sites More sharing options...
Stive Pesley Posted January 7, 2016 Share Posted January 7, 2016 I remember the days when the panic was all about "peak oil" and the doom-mongers were predicting ever increasing prices as oil became a rarer and rare commodity! Link to comment Share on other sites More sharing options...
GeneralRam Posted January 7, 2016 Share Posted January 7, 2016 3 hours ago, Ramarena said: The pound is now dropping as well (that said it's been slowly sliding for months), currently at $1.456. If it eventually get's down to $1.40 territory then there could be big problems. They'll prop it up with interest rate rises though. Link to comment Share on other sites More sharing options...
Shang Posted January 7, 2016 Share Posted January 7, 2016 Just now, GeneralRam said: They'll prop it up with interest rate rises though/ Which is what Osbourne has brought up in his speech and made a really big point about it. Kept reiterating the BofE is independent but should raise interest rates soon. Link to comment Share on other sites More sharing options...
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