Friday, December 11, 2015

Brent: 24 Cents/Liter; Evian Bottled Water: 67 Cents/Liter; And The Brits Still Pay $6/Gallon Of Gasoline (US Equivalent) -- December 11, 2015

John Kemp is tweeting:
"It was to me an economic aberration that oil remained much cheaper than Evian mineral water," the Shah of Iran once wrote.
That was then. Today:
THE SHAH must be spinning in his grave.
  • Brent: 16 pence per litre (24 cents/liter)
  • Evian (bottled water): 44p per litre (67 cents/liter)
One US gallon =  3.78541 liters. John Kemp says a liter of gasoline costs 99.9 pence in the UK. Today, 99.9 pence = $1.51. Therefore, in the UK, folks are paying $5.72 / US gallon (equivalent -- see first comment regarding "size" of a UK imperial gallon).

And John Kemp writes that the Brits should thank Saudi Arabia for "cheap" gasoline:
Dec 11 Britain's motorists have Saudi oil minister Ali al-Naimi to thank as the country's supermarkets cut the price of petrol to less than one pound per litre for the first time in six years.
Morrisons, the country's fourth-largest grocer, has cut the price of unleaded gasoline to 99.9 pence per litre, the lowest price excluding special promotions since 2009, and other supermarkets are expected follow, according to the BBC.
Brent prices have fallen to $39 per barrel for the first time since 2008/09 after the Organization of the Petroleum Exporting Countries (OPEC) failed to agree a production level at its meeting on December 4, 2015.
By the way, this "stuff" about "failing to agree to a production level" is a bunch of malarkey. OPEC has exceeded quotas every year at least since 1998, with perhaps two minor -- and very, very minor -- exceptions. Previously posted.

This has nothing to do with OPEC -- which never set prices; Saudi Arabia always set prices -- OPEC simply went along -- but today this has nothing to do with OPEC. It has everything to do with worldwide production outside of OPEC. 

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