Crude oil prices continue fall

Oil prices have plunged again.

After meandering lower for the last two weeks, the Brent price has suddenly dropped about 7 US cents in a couple of days, West Texas about the same.

Surely our petrol prices will be lowered again? Is the Commerce Commission watching? Perhaps the AA?

Over three months, there’s been a very consistent drop. The Saudis will be pleased at the controlled plunge, happy they’ve avoided panic selling and hoping for higher prices in the long run.

Unfortunately it means the Western economies are still in the doldrums. Maybe China can save us?

Anybody been following the reasons behind the oil price slump?

May 2012 petrol and diesel prices

From AA Petrol Watch, 21 May 2012

Pump prices have finally fallen – after the AA first called for prices to drop a month ago – with Z cutting the price of petrol 4 cents per litre, and diesel 3c. It’s the first price change in 10 weeks, and the first price drop since early February. It’s also the longest period that motorists have ever paid so much – $2.20/litre – for petrol. While petrol prices peaked at $2.22/litre in May 2011, that lasted less than a week – the previous longest run was a month on $2.19/litre in early 2011. The highest diesel price was $1.92/litre for 10 days in 2008.

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Oil prices down as Europe staggers

Oil prices have been falling for six days [see oil price widgets in right margin]. The dire European economic crisis is part of the reason, since economies in trouble buy less oil. In addition, oil production has been raised to bring the price down a bit in a controlled fashion. AFP reports:

New York’s main contract, West Texas Intermediate (WTI) crude for delivery in June, dropped 51 cents to $96.50 a barrel, two days after hitting a near-five month low at $95.34.

Brent North Sea crude for June shed 63 cents to $112.10 a barrel in London midday deals, one day after striking a four-month low at $110.53.

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