Prices.... Going Up!!!

[Mystic]

^^ PS: What the UK is keeping from the world, but mainly, from itself:

This past week the British Pound weakened past $1.16, its lowest since March 2020, as the outlook of soaring inflation threatened to hurt the pound's purchasing power and further hurt the British economy. The City's economists (read: banksters) have forecasted consumer price inflation to rise to 18.6% by Q1/2023 owing to ever-incresing wholesale fuel and food prices. Exacerbating this rise are expectations that the UK's retail energy price cap could reach GBP 5,816 by April, compared to GBP 1,971 currently. Financial markets expect the BoE (Bank of England) to raise its main rate by 50bps , to 2.25%, at its September meeting, which would would be the seventh consecutive rate hike and the highest interest rates since 2008. Then there is the rampant political uncertainty ahead of a new prime minister to be chosen next month. (Source: S&P Global)

 

[YY1]

I just heard on the way to work that something related to housing in GB (I didn't hear the first few words), either the cost of government controlled housing, or possibly residential heating oil will be increased 80%, and have a later increase, already planned for of up to 75%.

I wish I had heard what it actually was.

 

[Mystic]

I just heard on the way to work that something related to housing in GB (I didn't hear the first few words), either the cost of government controlled housing, or possibly residential heating oil will be increased 80%, and have a later increase, already planned for of up to 75%.

I wish I had heard what it actually was.

There is a bit of a stir across Europe, and perhaps nowhere larger/louder than in UK~Ireland, w/ respect to rising cost of NRG bills ... and tempers.

It is "a thing" now, in continental Europe (especially in France) and in UK to post, at online forums, images of residential and business "power bills", as (for instance) in UK and Ireland the cost of heating, governments and large utilities service providers have announced, will like increase by as much as 80% between now (1 September 2022) and somewhere during October ... 2022. This tops off what has been, on average, an increase in NRG costs of around 250% YoY (August 2021 through August 2022) in UK and Ireland.

 

[Jeffery]

There is a bit of a stir across Europe, and perhaps nowhere larger/louder than in UK~Ireland, w/ respect to rising cost of NRG bills ... and tempers.

It is "a thing" now, in continental Europe (especially in France) and in UK to post, at online forums, images of residential and business "power bills", as (for instance) in UK and Ireland the cost of heating, governments and large utilities service providers have announced, will like increase by as much as 80% between now (1 September 2022) and somewhere during October ... 2022. This tops off what has been, on average, an increase in NRG costs of around 250% YoY (August 2021 through August 2022) in UK and Ireland.

Yep, lots of small business are going to have to close their doors over NRG bills. Slava Ukraini!

 

[YY1]

Where was it coming from prior to the 1990's when the former USSR was opened for business?

 

[Mystic]

Where was it coming from prior to the 1990's when the former USSR was opened for business?

That is a really good question we should inestigate, but my guess is European economies relied far less on Nat Gas and much more on ... coal ... prior to and likely into the 1990s. We know this is the case with England/Wales/Scotland and likely Ireland. It was also the case in France, although my the early 1990s the nukes were doing (by far) most of the heavy lifting in Frogland. So while I'm not 100% certain, my hunch is that Coal Was King, there was an 'awakening" to King Coal's perils, Soviet Union gave way to a Russia LOADED w/ cheap Nat Gas (and, heh heh, coal), and here we are.

 

[YY1]

So, about fossil fuel, demand, cost and the US strategic reserve...

There's been a lot of chatter about the US selling oil from the reserve.....specifically to China, but apparently also to other nations.

I'm not sure I understand:

A i- the US government is profiting from selling oil that was presumably purchased at lower costs?
A ii- where is that profit going?
A iii- who decides who it gets sold to?
B- wasn't the point of releasing reserves to lower domestic fuel prices?
C- I thought China was getting a good deal on oil from Russia, since a lot of their other customers have bailed.

Let's try to keep this non-political with respect to opinion of right/wrong.

 

[NH-MAN]

So, about fossil fuel, demand, cost and the US strategic reserve...

There's been a lot of chatter about the US selling oil from the reserve.....specifically to China, but apparently also to other nations.

I'm not sure I understand:

A i- the US government is profiting from selling oil that was presumably purchased at lower costs?
A ii- where is that profit going?
A iii- who decides who it gets sold to?
B- wasn't the point of releasing reserves to lower domestic fuel prices?
C- I thought China was getting a good deal on oil from Russia, since a lot of their other customers have bailed.

Let's try to keep this non-political with respect to opinion of right/wrong.

I think stuff like this you could pull your hair out trying to find the truth and still not be confident in a conclusion. its all underground stuff where people do keep their secrets, they will show convincing papers making coming and goings look legal and legit but it won't be what they are doing.

One might catch a few mis-dealings but they "give" you that if you look hard enough and they know people will find it but its nothing in the scheme of things but satisfies people to say gotcha even though its nothing to them and just keeps you busy while they do their thing.

 

[usedto]

One of the benefits of being self-employed in the wholesale/retail business. Prices go up - my prices go up.

 

[petes'picks]

All I know is oil and natural gas companies are posting record profits. Whole lotta price gouging going on. As a matter of fact last year US companies posted record profits and are up 10% over last years record so far this year. They have come to realize how powerful made up excuses are. They can only squeeze so much juice from an orange but they dont care because they will have theirs while the rest wallow in the aftermath.

 

[felix_katze]

Most countries have strategic reserves of one sort or another. China holds metals like copper, and if the world prices get too high they release some to the market to drive prices down. The only way to affect prices downwards is to release to the market as a whole otherwise you just open up arbitrage opportunities. Which is bad. So yes, US strategic reserves would get sold on the open market as it increases supply overall and helps drive prices down.

 

[stereofanboy]

I paid $3.22/gallon when I filled up a couple of days ago. I'm glad it's less than it was, but can't forget that's still $1.22 higher than February before last.

Groceries, on the other hand are still going up. I guess they always lag behind gas.

 

[NH-MAN]

What I do know is someone wanted to refill, top off however you want to put it our strategic reserves when prices were low which is a no brainer to like .....anyone, but was voted down just because, so our reserves weren't full when we opened them up.

 

[Mystic]

So, about fossil fuel, demand, cost and the US strategic reserve...

There's been a lot of chatter about the US selling oil from the reserve.....specifically to China, but apparently also to other nations.

I'm not sure I understand:

A i- the US government is profiting from selling oil that was presumably purchased at lower costs?
A ii- where is that profit going?
A iii- who decides who it gets sold to?
B- wasn't the point of releasing reserves to lower domestic fuel prices?
C- I thought China was getting a good deal on oil from Russia, since a lot of their other customers have bailed.

Let's try to keep this non-political with respect to opinion of right/wrong.

As you've asserted, I, too, have been reading that China and India are scooping up Nat Gas and refined oil from RF, India even getting it @ sufficiently cheap to re-sell a portion to EU Area states.

 

[Mystic]

I paid $3.22/gallon when I filled up a couple of days ago. I'm glad it's less than it was, but can't forget that's still $1.22 higher than February before last.

Groceries, on the other hand are still going up. I guess they always lag behind gas.

Well, gasoline prices oughtta be declining. Sure, there are delays b/w benchmark price of crude and refined product, but here's the USD/Bbl trend for WTI Crude from March > August 2022:



The USD/Bbl cost of $88.71 is 30% lower than the high for 2022.

 

[Mystic]

Mo' money on American streets?

U.S. LABOR FORCE PARTICIPATION: 2015 THROUGH JULY 2022 (MILLIONS)

Source: St Louis Federal Reserve Bank

 

[Mystic]

How is the market for COAL in 2022?

The spot price for COAL, per the Newcastle coal futures benchmark that determines the international market cost, expressed as USD/Tonne, reached an all-time high of $435/T on Saturday 4 September 2022.

The demand for coal is back with a vengeance, it's rise owing to robust demand and persistent supply disruptions exacerbated by the war in Eastern Europe.

The International Energy Agency predicts coal consumption in Europe rising by 7% in 2022 on top of 2021's 14% increase, with the continent now turning to seaborne coal imports from South Africa, Indonesia, and Australia as coal supplies from Russia fall away.

Demand for coal in India, the world's second-biggest coal importer behind China, is expected to rise by 10% in 2022 as the country's economy expands and electricity use increases.

COAL - USD/T (Newcastle Benchmark) - SEPTEMBER 2021 TO 4 SEPTEMBER 2022

Source: International Energy Agency

NOTE: YoY - USD/T of coal has increased 145.07%

PS: Smoke gets in yer eyes.

 

[ernieb1536]

How is the market for COAL in 2022?

The spot price for COAL, per the Newcastle coal futures benchmark that determines the international market cost, expressed as USD/Tonne, reached an all-time high of $435/T on Saturday 4 September 2022.

The demand for coal is back with a vengeance, it's rise owing to robust demand and persistent supply disruptions exacerbated by the war in Eastern Europe.

The International Energy Agency predicts coal consumption in Europe rising by 7% in 2022 on top of 2021's 14% increase, with the continent now turning to seaborne coal imports from South Africa, Indonesia, and Australia as coal supplies from Russia fall away.

Demand for coal in India, the world's second-biggest coal importer behind China, is expected to rise by 10% in 2022 as the country's economy expands and electricity use increases.

COAL - USD/T (Newcastle Benchmark) - SEPTEMBER 2021 TO 4 SEPTEMBER 2022
View attachment 2655798
Source: International Energy Agency

NOTE: YoY - USD/T of coal has increased 145.07%

PS: Smoke gets in yer eyes.

Sad for the envirement ! But good news for the folks in West by God Virginia , Kentucky and Pa

 

[chicks]

 

[Mystic]

Sad for the envirement ! But good news for the folks in West by God Virginia , Kentucky and Pa

...and Russia.