Topic: The knock-on impact on petrol, Oil prices Not just Bitcoin (Read 1107 times)

fuel prices still dropping down loving the savings and including BTC still on the down trend but much is going on in crypto world and is effecting prices but oh well bring on $100s by next week no doubt if it continues on downwards side and that is what is just happening with many selling needing funds for new year and selling off paying other bits of. Keep on dropping because I will keep on buying chunks and saving for the future. Thats if BTC can recover and have a future and BTC does not get knocked off the top 1 rank.

Why would they do that? If oil price goes down also energy goes ad also goes miners. On medium run all prices should decrease especially high energy usable things.

oil crash
usd crash
arabic area win
gold win
bitcoin win

 

Am just saying in a way prices of BTC falling making it good to buy in and wait for the rise. As like fuel nice and cheap to fill car up n not have to spend more than needed. So best of both worlds for buying. Buy in terms of selling BTC is not a good time at all.

Only thing I see that is relevant to bitcoin is that the major mining companies should stop being like the saudis and curb their production.
If you are in some way saying there is a link between btc and oil prices......to be nice I will say that is a stretch. 

Found some interesting news this morning kind of answers my questions to why prices are falling all over the place. Least if they continue will have nice cheap fuel and also nice cheap Bitcoin as that as dropped a fair wacky too and I don't see Bitcoin coming up to $600 any time soon unless theirs some massive impact and some amazing improvements and more people use it.

THE oil price has fallen by more than 40% since June, when it was $115 a barrel. Seems to be following same sort of trend as BTC as that is down by a fair price too. Price of a barrel is now below $70. This comes after nearly five years of stability. At a meeting in Vienna on November 27th the Organisation of Petroleum Exporting Countries, which controls nearly 40% of the world market, failed to reach agreement on production curbs, sending the price tumbling. Also hard hit are oil-exporting countries such as Russia (where the rouble has hit record lows), Nigeria, Iran and Venezuela. Why is the price of oil falling?

The oil price is partly determined by actual supply and demand, and partly by expectation. Demand for energy is closely related to economic activity. It also spikes in the winter in the northern hemisphere, and during summers in countries which use air conditioning. Supply can be affected by weather (which prevents tankers loading) and by geopolitical upsets. If producers think the price is staying high, they invest, which after a lag boosts supply. Similarly, low prices lead to an investment drought. OPEC’s decisions shape expectations: if it curbs supply sharply, it can send prices spiking. Saudi Arabia produces nearly 10m barrels a day—a third of the OPEC total.

Four things are now affecting the picture. Demand is low because of weak economic activity, increased efficiency, and a growing switch away from oil to other fuels. Second, turmoil in Iraq and Libya—two big oil producers with nearly 4m barrels a day combined—has not affected their output. The market is more sanguine about geopolitical risk. Thirdly, America has become the world’s largest oil producer. Though it does not export crude oil, it now imports much less, creating a lot of spare supply. Finally, the Saudis and their Gulf allies have decided not to sacrifice their own market share to restore the price. They could curb production sharply, but the main benefits would go to countries they detest such as Iran and Russia. Saudi Arabia can tolerate lower oil prices quite easily. It has $900 billion in reserves. Its own oil costs very little (around $5-6 per barrel) to get out of the ground.

The main effect of this is on the riskiest and most vulnerable bits of the oil industry. These include American frackers who have borrowed heavily on the expectation of continuing high prices. They also include Western oil companies with high-cost projects involving drilling in deep water or in the Arctic, or dealing with maturing and increasingly expensive fields such as the North Sea. But the greatest pain is in countries where the regimes are dependent on a high oil price to pay for costly foreign adventures and expensive social programmes. These include Russia (which is already hit by Western sanctions following its meddling in Ukraine) and Iran (which is paying to keep the Assad regime afloat in Syria). Optimists think economic pain may make these countries more amenable to international pressure. Pessimists fear that when cornered, they may lash out in desperation.

Oil down, Fuel down, Bitcoin, Down, Looks to be a nice cheap 2015 ahead. What are your thoughts on 2015 will Bitcoin bounce back up with prices of fuel and oil, or will we see a nice cheap 2015???