2nd Rower wrote:

Zilch wrote:

d and the Aussie govt reckons people are not getting screwed by the Petroleum companies

I don't know anything about the crude oil market, but given that oil is traded in USD$, and that over the last year or so with the USD$ being in the toilet, we have had record highs with the AUD$ being in some cases up to as much as USD$0.92. Why then is oil not cheaper locally?

Any experts on here that can explain that one to me please?

It just seems too much of a coincidence that oil companies are making record profits..I seem to recall that in the 'good old days' of the 70's and 80's IBM would import PC's, even if they had local manufacturing plants, if they could use the varying strengths of currency exchange rates in their favour!

The US Dollar has been in the toilet, but at a pretty consistant rate against Sterling for a while now.

The Dollar has suffered most Vs Euro where 12 months ago it was tracking at around Euro1.30ish but is now tracking at Euro1.55ish.

This is good news for Eurozone as buying anything in US Dollars goes further.

However, this has been more than offset by unprecedented levels for the cost of a barrel of crude which smashed through the $100 mark sometime ago and is still rising.

In fact, it is forecast to continue to rise further which means pump prices all over the world, no matter how your currency is trading Vs the Dollar, will continue to rise. Runner up - 2009 Best Avatar Award
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Oil companies are basing their futures and cost structures on price per Barrel way below what it is today so despite profits the accountants want to gather as much profits as they can.

Also with a high oil price, Oil companies are expanding into areas of exploration and production which were too expensive or difficult(risky) at the lower oil price.... this is costing a lot more money.... eg Shell just spent $2billion on leases in the Chukchi sea off Alaska... that is without starting full scale exploration or anything else.

Companies are looking to budget a lot more than that on unconventional projects (tar sands, Sour Gas plays) in Canada and the Middle east... money has to come from somewhere, that is if you want fuel to put in the RRS.... Brit across the Pond
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One question is just the price of fuel going up, but my original post was the Petrol v Diesel question - today at my local shell there is now a 12p difference - I'm now thinking of a petrol 2.0T for wifeys Q5