Welcome to the 'New Somerset and Dorset Railway'
Thursday, May 22, 2008
new record prices for oil ...
Motorists faced more grim news as oil hit a new record above 135 US dollars a barrel on supply fears and US economic concerns.
The fresh peak came in the week the AA motoring organisation reported the highest monthly rise in average diesel prices this century - up by 6.76p to 124.17p a litre. Petrol also leapt 4.49p to 112.55p a litre in the month to mid-May.
Crude oil for July delivery peaked at 135.04 dollars in overnight Asian trading as demand showed no signs of abating.
The spike came after US figures showed an unexpected drop in stockpiles, while downbeat growth forecasts from the US Federal Reserve weakened the dollar. Source.
Prices may fall again, but few now expect oil ever to go below $100/barrel again - yet even a year ago $100 oil was considered a fantasy. 10 years ago it was just $10 a barrel.
What this means for the S&D is uncertain. It may mean fewer visitors - though motorists are extremely unlikely to reduce their driving over the short term in response to higher petrol prices, despite all their moaning! They are more likely to cut back on other things. Long term it means a much brighter future for rail generally, as a persistently high oil price will result in people making lifestyle choices that will reduce their dependence on the car - but decent public transport needs to be in place to allow them to do this.
Much more on our associated site ...