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The mkiv Supra Owners Club

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I see that prices have started to creep back up.

 

Big drop in price to the end of last year, hooray, then all of a sudden the prices start to creep back up. Two weeks ago it was 83.9/ltr now its upto 87.9.

 

I wouldn't mind but oil is still low for a barrel. It won't be long before it's back upto £1 a litre:(

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Indeed i noticed that as well!!

 

Cost me £40 to fill my Astra that i drive to work!! But still must be reasonably "cheap" (this is compared to what the prices were last year!) to fill the Supra up??!!

 

Havent done it for so long i wouldnt know how much it would cost with the prices at the mo!! :)

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Prices have barely moved recently, its still at $39 a barrel.

 

 

 

Thats just it though, the pound is getting stronger and we are getting a much better conversion rate now than 2 weeks ago!

 

Gaz.

 

You might be onto something there. I guess the oil companies use the financial futures markets to hedge exchange rates a small time into the future. When those futures contracts expire (they don't last more than a few months AFAIK), they have to take out a new contract (with a much less favourable price in this case due to the sharp drop in Sterling).

 

It's like fixed rate mortgages. You can fix your rate for anything up to a few years at a time to protect you from high interest rates. Suppose that after you take out a fixed rate, interest rates rise sharply. You'd be protected from those rises, but if they remain high when the fixed-rate runs out, you'll have to negotiate another deal with a much higher rate.

 

... or they could just be coining it in and hope we don't notice....

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I see that prices have started to creep back up.

 

Big drop in price to the end of last year, hooray, then all of a sudden the prices start to creep back up. Two weeks ago it was 83.9/ltr now its upto 87.9.

 

I wouldn't mind but oil is still low for a barrel. It won't be long before it's back upto £1 a litre:(

 

Amazing isnt it. With Oil at less than $40 a barrel we were still happy to pay 84p to the ltr at the pumps......

 

This is what happens when they effectively desensitize us by increasing the price extortionately and are obviously allowed to do so with pretty much zero control from the govt.

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You might be onto something there. I guess the oil companies use the financial futures markets to hedge exchange rates a small time into the future. When those futures contracts expire (they don't last more than a few months AFAIK), they have to take out a new contract (with a much less favourable price in this case due to the sharp drop in Sterling).

 

It's like fixed rate mortgages. You can fix your rate for anything up to a few years at a time to protect you from high interest rates. Suppose that after you take out a fixed rate, interest rates rise sharply. You'd be protected from those rises, but if they remain high when the fixed-rate runs out, you'll have to negotiate another deal with a much higher rate.

 

... or they could just be coining it in and hope we don't notice....

 

This is pretty much how it works.

 

Oil prices quoted on the markets are for delivery 2-3 months down the road.

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"Price of petrol creeps up in 2009": http://news.bbc.co.uk/1/hi/business/7888458.stm

 

Nothing we didn't already know. I was hoping the article would explain why prices are going up, but it doesn't.

 

"After the dramatic drops in pump prices at the end of last year, it may seem unreasonable to criticise the new rise in prices, particularly when current prices are way below those in February 2008," said Edmund King, the AA's president.

 

I disagree. Just because prices were sky-high in Feb 2008, that's no reason for them to creep up again now. The main factor must be the cost of crude, which is still very, very low.

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