Thread: So the banks have cut the rates... what about oil ?

oil wont go down as it's traded in US$ and the Aussie has collapsed in the last few weeks on world markets

If you look at the graphs the AUD slide has coincided with the oil slide.

It depends on exactly which dates you compare, but roughly speaking, the price of oil in $US has fallen by about 20-30%, and the value of the $A has fallen by about 25% relative to the $US

John

Originally Posted by rick130

oil wont go down as it's traded in US$ and the Aussie has collapsed in the last few weeks on world markets

But it has gone down, was about $200 /barrel only 2 weeks ago or so now down to $88, the world markets have collapsed not just the aussie so i dont see your point, demand for oil should drop therefore causing a stockpile which they will have to reduce the price of to move it.

Originally Posted by JDNSW

It depends on exactly which dates you compare, but roughly speaking, the price of oil in $US has fallen by about 20-30%, and the value of the $A has fallen by about 25% relative to the $US

John

Oil has fallen more like 50-55 %.

Originally Posted by loanrangie

But it has gone down, was about $200 /barrel only 2 weeks ago or so now down to $88, the world markets have collapsed not just the aussie so i dont see your point, demand for oil should drop therefore causing a stockpile which they will have to reduce the price of to move it.

Petrol is such an inelastic product that I don't reckon demand is going to change much at all. Even when it has been at all time high prices, it really hasn't stopped many people from buying it.

Unfortunately our dollar which was nearly 1-1 with the US was at .66c a few seconds ago. That means any drop in oil price should be matched by the dropping $

Thehighest oil was for any sustained period was about $120, not $200. I think it touched $140, but only briefly. I could be wrong, as I don't follow it closely, but I would have thought I'd have noticed if it had reached $200 or close to. Of course it also depends which price you are talking about! The one usually quoted on the news is West Texas Intermediate, which is a lot more volatile than Tapis, which is closer to what Australian prices are based on, although these are actually based on Singapore refined product prices, which vary a bit differently.

John