Looks like gas is on the way-up again

BBC NEWS | Business | Oil soars to new record over $135

How does this happen at the start of summer when demand for heating oil etc falls-off ?

I'm wondering whether this is all genuine supply and demand and not just speculators at work ?

‘Perhaps 60% of today’s oil price is pure speculation’

There was an interesting program on Radio 4 earlier in the week. They were saying that a fair proportion of the recent price rises in commodities are directly attributable to speculation by unaccountable Private Equity companies, not just in the 'states but worldwide.

One example was quoted regarding wheat, where it was estimated that the "Loose" capital funds, owned by these Private Equity companies, which were used to speculate on the wheat market, had contributed to a 40% increase in prices and that the total funds employed in this speculative process were in fact worth two to three times the total value of the wheat market if the prices were determined purely by consumers demand and supply.

Nick,

22/05/08

Yep, sounds about right.

Maybe the Islamic point that making money off the back of money rather than work has something to say for it.

After all people playing money make big £££ while people making real goods make diddly squat doesn't sound right if you stand back and look at it.

The summer demand spike is caused by the US 'Driving Season' where Mr n Mrs avereage American go on their holidays. Remember 80% of em havent got a passport , so tend to holiday in their own country , and do so by car/SUV/Motorhome.

Perhaps that's an agenda item for the next WEF at Davos ? Resolving sensible ratios in the world economy for funds devoted to the frivolous futures and commodoties markets in relation to those necessary for production i.e a move back to basic fundamentals of a financial system that benefits the wider population. Loans to asseys ratios banking style . . . oh dear, what am I saying ?

Nick,

22/05/08

Perhaps that's an agenda item for the next WEF at Davos ? Resolving sensible ratios in the world economy for funds devoted to the frivolous futures and commodoties markets in relation to those necessary for production i.e a move back to basic fundamentals of a financial system that benefits the wider population. Loans to asseys ratios banking style . . . oh dear, what am I saying ?

Nick,

22/05/08

Careful Comrade, the capitalists might hear you and have you shot.

Before I went to London last week on Wednesday

The Shell station up on Beaumont Rd was at 110p per litre and the one on Crompton Way was 111.9

I'm sure they all are at 112.9p now

At the service stations I have seen 119.9 for unleaded and 130.9 for diesel

Filled up in Slough at 113.9 so theres not much of a North/South divide anymore.