Crude oil prices continue to fall drastically

by Michael Smith (Veshengro)

Dachas1_webCrude Oil Prices continue to fall drastically and some investment banks predict the recent stockpile drops with continue after the summer season ends. As growing US output could reverse the inventory trend later this year.

Despite this, however, energy companies have and are increasing their prices claiming high the wholesale price of oil and gas being the reason for the price hike. We must, therefore, come to the conclusion that either the prices for oil (and gas) are falling and the companies are lying to us or that the analysts are wrong; take your prick. Nor, I am sure, has the motorist noticed any reduction in the price at the pumps. It always amazes me that when the costs go up the prices immediately do too but when they go down, the costs that is, there is barely a downward movement, at least not a significant one in line with the drop in costs.

The Bank of England voted to keep their Interest Rates low and cut it's forecast for growth and wages as it warned that Brexit was weighing on the country and previous speculation was over-estimated. This gloomier outlook has impacted on the strength of the Pound, with Sterling hitting a nine month low against the Euro shortly after the announcement.

Prices in UK shops fell slightly faster in July, say the statisticians, though not that most shoppers would have noticed, than a month before but are likely to pick up again later this year. As a result of the increased cost of imports after Brexit, food prices were pushed up, however, contrasting to the deflationary trend of the last 4 years due to supermarket price wars, say the “experts”.

So, the food prices were pushed up with the increased costs after Brexit, even though we actually have not left the EU and the customs unions as yet. So who is trying to make a quick buck out of something that has not, as yet, happened?

While it may be true that import costs for food (and other things) have somewhat increased due to the Pound having fallen in value in comparison to the Euro there seem to be some things that do not completely add up.

On the other hand it shows, yet again, that our dependence on food imports is not a sustainable position and that we must produce more food for home consumption. But farmers seem to be, often, more concerned out exporting their produce and animals rather than with the home market. Each and every time we hear them on the radio, for instance, they are worried that Brexit will impact on their exports. What they seem to all forget is what the job of the farmer is, namely to produce food for the people in the country. Export should only be a secondary thought, as to exporting surplus that cannot be sold at home.

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