OIL at 3 Year Low!!

[AndreZA]

Other night they said on the news that petrol prices were coming down a record R1 some change. Right! Forgot to mention that it went up faster than the space shuttle Endeavour and higher too.

Seems to me that the price decline is a tad slow by comparison' date=' as in slow with a capital "F".

 

 

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when the price increased it was due to the oil price and R/$ increasing. Doube wammy. Now we're only getting the oil prce bit back as the R/$ exchange rate is not recovering.

 

 

[HomerSimpson]

As a scientist I understand things that follow the laws of nature and physics...so I have no clue about economics.  However, the one member of the household who supposedly knows more about this stuff tells me that it seems to be generally accepted that the global economy will only bottom out in 9 months or a year from now.  The low oil price is simply a question of supply and demand; OPEC cut production when the price was around $80, had no effect. What worries me is that we have seen little real impact here in SA compared to the rest of the world...yet.

[Evan Andreou]

I wish all the oil runs out to be honest! Then we can use our bicycles for everything 

 

This gets my vote for the most stupid post of the year. And its not as if there is a lack of competition for this particular accolade.

 

Nathrix' date=' I would say that your area of expertise is more suited to the posting of smut than it is to economic commentary. Perhaps you should stick to what you do best?

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[Evan Andreou]

The fact that US and Euroland are heading deep into their winter shortly will increase the demand for oil, which should see an increase in price follow.

[idrive]

FECK OPUC

[Mudsimus]

All I know is that I now pay R80 less to full my tank. Thats 12 beers.

[TYGA]

I am not sure whether  it was an allegations or truth but I heard about some brain surgeon at SAA that decided it would be a brilliant strategic coupe to hedge by fixing their oil purchase price at $140 a barrel for a year? Ouch ouch ouch!!!

[lowracer]

as I said elsewhere  ................. Petrol's come down so the price of bikes and milk will follow suite!!

 

no it wont'... Grocery stores like Pick & Pay' date=' Shoprite, Spar won't bring their prices down now that they can score millions!

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they cannot sell any item at a lower price than they pay for it.

[fandacious]

they cannot sell any item at a lower price than they pay for it.

 

actually - they do.

 

then they take up to 90 days to pay their suppliers and score on the interest. clever hey

[TYGA]

Getting back to mining though, it costs mines more to produce an ounce of platinum at this stage than its worth on world markets. The retail markets of mine driven economies are nervous, very nervous. This has already caused us as a retailer to put a hold on expanding in Klerksdorp and a few other mine driven towns. Recession, anyone? XTC12008-12-03 01:13:40

[Captain Slow]

 

All I know is that I now pay R80 less to full my tank. Thats 12 beers.

 

Cheapskate!!  Your obviously support the local shebeen!!!

 

[Evan Andreou]

Our dealers tell me yesterday that the market is pricing in a 0.5-1% drop in interest rates in December' date=' with most agreeing on 1%. This, with the oil price, is good news, but willehond is right, we're in the biggest global recession since 1930

I wont hold my breath for oil though - OPEC wants it back at $75 and will restrict supply to do that.
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The fact that petrol price has come down significantly, coupled with better than expected inflation figures have most people hoping for a rate cut. The consumer is counting on it too, I believe a rate cut in December would be a mistake; we are far from the inflation target zones and a cut now, whilst a popular choice, would be a fiscal mistake. I would be happier with rates left unchanged and a cut in Q1 2009 if the trend persists.

[TYGA]

I tend to agree with Wolverine, you cut rates in December you will see some crazy financial headlosing and people doubly indebted by the time February swings around.

[Thug]

Rates here are more likely to cut in the 1st Quarter of next year, otherwise together with the petrol price decrease, a spending spree might occur which would have dire consequences next year.

 

Was listening to the business report this morning and the US carmakers are requiring Govt loans of around 22 Billion to bail them out. Ford did say that they don't think that they require cash immediately but would like 9 Billion to be made available, just in case.

 

Car sales are down (in the US) by between 30-40% for virtually all manufacturers including those imported such as Honda & Toyota.

 

[scotty]

I am not sure whether  it was an allegations or truth but I heard about some brain surgeon at SAA that decided it would be a brilliant strategic coupe to hedge by fixing their oil purchase price at $140 a barrel for a year? Ouch ouch ouch!!!

 

True, and we the taxpayer will be paying for it as the gvt will bail them out.

[Harryn]

Wolverine, what is absolutely amazing to me is how quick it has taken for the oil price to lose 67% of its value. In July, brent was trading at $150!!

 

What do u think is the outlook for Sasol shares, in the short and long term?