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Maizefarmer

Oil Price

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Ok I got a better explanation on the news about why very low oil prices are a bad thing. Low oil prices = low demand. Even though the wells have cut back production it is still not selling fast enough. Low demand = low business activity. Bear in mind that winter is usually when most oil is need, heating etc...

Interesting, but that would appear to mean that low oil prices signal that demand is already lower, not that demand will slide (?) Not knocking your comment, Mosha; I ask in order to understand, in fact.

Even more interesting: why does this signal a slide in the price of my rice? People have to eat and there's more of 'em with each passing day. Please explain this for me.

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You've been listening to BBC World Service - thsi exact subject came up about 12 hrs ago on BBC-WS.

Its fear - market fear - a combination of both low demand (current) and anticipated. But we also need to keep in mind that OPEC is not the influential power it was 20 years ago. There are now a lot of countries pumping oil who have no time for OPEC and who will use any excuse to buck OPEC's trend. i.e. OPEC needs to find a balance that does not encourage non-members to pump more to make up for what it's not willing to pump.

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Whats happening with the price of fertilizer ?

I was expecting it to drop with the oil price, but about 8 wks ago I paid 1,400 for 50kg.

Any drop yet ?

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Ok I got a better explanation on the news about why very low oil prices are a bad thing. Low oil prices = low demand. Even though the wells have cut back production it is still not selling fast enough. Low demand = low business activity. Bear in mind that winter is usually when most oil is need, heating etc...

Interesting, but that would appear to mean that low oil prices signal that demand is already lower, not that demand will slide (?) Not knocking your comment, Mosha; I ask in order to understand, in fact.

Even more interesting: why does this signal a slide in the price of my rice? People have to eat and there's more of 'em with each passing day. Please explain this for me.

Built into the price is transportation costs. Although the rice we buy is dropping in price we are still paying a lot more than we did 12 months ago. When the price of oil rocketed so did food prices, they haven't however come down as quickly as the oil has.

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MF, 15 15 15 + TE

the brand name doesnt spring to mind,

pink bag, the best quality in the shop, i hope

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Oil has settled in the 43 to 46/bbl for the past week so maybe we will begin to see some stability. I notice pump price has gone up twice in past week or so.???? This is the lowest oil has been in past 3+ years (except when it recently dropped to 32/bbl-+), too bad pump price does not reflect same. What is the deal on 91 gasoline being higher in price than 95 by about 4 baht a liter? Appears the Thai refining system is going to try keep charges for refining and petrol prices high and subsequently pump price. This is at the consumers expense of course.

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List of PTT oil prices: http://www.pttplc.com/en/nc_oi.aspx?

The Gasoline 91 (red label) is pure gasoline and about 4 Bahts/liter more expensive than the Gasohol 95 (orange label), which is a 90/10 blend of gasoline and ethanol. Whereas the Gasohol 91 (dark green label) is logically cheaper than the Gasohol 95.

Pump prices have gone up in February due to the re-introduction of the excise tax, which was suspended last year to help consumers and businesses when the gasoline was up to 38 Bahts/liter.

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Just for comparison purposes last time oil was 60 us/bbl diesel price was at 22.8 baht/liter present oil price 60 us/bbl and diesel price is 27.6 baht/liter. Diesel price peaked last year in July at 43+_baht/liter and this was with oil at record high of 143+_ us/bbl. What is tax on a liter of diesel at the pump? Is Thailand still importing diesel from Russia at 37 baht/liter and mixing with current priced fuel. thus the higher pump price?

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The government was forced into subsidizing fuel prices during the last round of hikes - now its trying to claw back the money it put into that subsidizing. A little bit cheeky - it makes you wonder what the point of subsidizing was, if it was going to come round later and sting the consumer.

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I do not think the govt can be blamed for tax vs petrol price, Oil peaked at 72/bbl (july 2009) and diesel price (lag time) peaked at 28.69 here in CM, oil price dropped to 60/bbl diesel went to 27.69, oil today 65/bbl and diesel went to 28.04 The farmers who were doing budget at 50% fuel cost this year vs last year 140/bbl (July 2008) at this time may have to revise budget for fuel costs. Diesel fuel price Singapore last week was 66/bbl. Are the petrol pumps stations and PTT , using the oft repeated Thai business thinking if sales are down, raise price to get our profits back up? The end user product price for many consumer goods are set by government decree, (LPG, shampoo??? pork, eggs, rice, etc) How can you set consumer price if you can not/will not set limits on the cost to produce/transport said items? It confuses my thinking to watch what is taking place in Thailand today.

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