Where is the oil price going?

This week one newspaper reported that hydrogen based fuel would be available in a few years, it would be capable of using it in existing cars and would sell for about a third of today’s oil based fuel, provided the fuel was not taxed. If you factor in the tax that all governments now place on fuel, then the new hydrogen fuel would be considerably more expensive than fossil based petrol and diesel, but the news report glossed over this aspect.

Today oil is trading at just over $95 a barrel for Brent crude, and Mr Jim Rogers who co founded the Quantum Fund with Mr Soros, predicts that oil will soon reach $200 a barrel. Mr Rogers thinks that demand fr commodities from China will drive the oil price upwards.

Ultimately a settled oil price will depend upon supply and demand, but supply in the oil industry is always guesswork as nations and oil companies frequently mis-state their reserves, either as a result of deliberate policy or for nefarious reasons.

In the United Kingdom about 18% of the homes are off the natural gas grid, and many of these homes use heating oil to heat their space and their water. Every few months a small oil tanker drives up and refills a large tank with heating oil. Traditionally, the tanker driver replaced the lid trhough which he filled the tank and drove off, leaving the householder to convert the heating oil into energy.

Today it seems that many householders are finding that the oil they bought is no longer there. It has, because of its value, been abstracted by thieves. Police are advising people to lock up their oil tanks.

Time to get some solar panels for these homes. Solar heating is a far cleaner fuel than heating oil, and the oil delivery truck will call less frequently.  I have yet to hear of any solar panels being stolen from a roof and no one can steal the daylight.


2 Responses

  1. If we recheck the previous data of gold and oil prices , we’ll find that one actually rather stable , a barrel crude oil equivalent to 2 ~ 3 gram pure gold , not too fluctuate.

  2. Excuse me , I would more sharing , after two years on my note , we can check that a barrel crude oil still equal 2 ~ 3 gram pure gold. Now , we have barter on line calculator base on 4.25 gram gold 22 k , the site , http://indonesiasoftware.com/barter/kalkulator.php or http://www.geraidinar.com/index.php/dinar-calk .

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