The EU debate - Part III

The simple fact is that global oil is paid for in USD.

Whilst it's true that the price of petrol would rise anyway if the price of oil rises. That USD price rise will be exacerbated in the UK by sterling's weakness vs the USD.

 

Is the right answer.

The 19% drop in the value of Sterling against the dollar has impacted the pump price - simple as.

I was speaking to a fella who owns a manufacturing business yesterday, and he's on the verge of being forced out of business due to the slump in the pound. As he imports his raw materials from the EU and assembles his product here for the UK market. The increase in materials costs has reduced his margin to next to **** all and the companies he supplies won't accept an increase in the price per unit. So he's ****ed.

 

... this is way too sensible ... not even one mention of the Romanians hanging around the Pay-At-Pump outlets with their distraction techniques and syphoning pipes eh? ... you complete fcukwit

 

Congratulations, you've excelled yourself.

This comment trancends all previous levels of idiocy.

 

I have to say he's not very astute, Tobes.

If the success of my business depended so heavily on my import costs in another currency - dependent to the point I could go out of business if there was a sudden drop in the value of Sterling - I'd have hedged as far forward as I possibly could.

That way I would know my fixed importation costs for the forseeable future.

 

Surely this is an extreme situation. 20% drop is certainly extreme!

That's your margin right there.

It's also unexpected as who would have thought there were so many people in the country who would vote for economic suicide? They certainly kept quiet in the build up to the referendum.

 

No debating that the fall of the £ verses $ has had an effect on the price increase, as, as you have said oil is paid for in dollars. The point I'm making is that you cannot ignore the recent happenings of OPEC, which will drive up costs as well.

 

What's the correlation between oil price and petrol price? Obviously positive to an extent but there rarely seems to be much correlation given the dollar price is well under half what it was not too long ago still.

 

He's only a small operator mate, and he's not that experienced. He was ****ing suicidal

 

Sorry I have no idea.
I guess the point I was making is that every bad decision, business result, currency adjustment cannot be entirely blamed on Brexit, no matter what is said.
I was trying to balance the argument

 

Isn't it? Who said it wasn't?

 

Strawman. Who said that was a DIRECT result?

 

But the increase in barrel costs haven't?
Sorry but this is a blinkered response. Blame it all on Brexit!

 

Here we go

 

When Arab states tried to set up their own economic system for sales of their oil, the west bombed the **** out of them.

 

Yep. You're off again.

 

Some on here have such a limited, narrow view of things, they fail or refuse to see the wider picture.

It's why they're limited to UK economy and 'racism' responses, and when the holes appear in that, they go for abuse.

I discussion rather than a challenge could be more revealing.

 

You said;

Like the other quotes about the economy, it's what most expected and another example of the fragility and failings of the current global economic system.
Not every it of doom and gloom is brexit's fault.

When confronted with a direct quote about financial sector business leaving the UK if we lost single market access. That's **** all to do with 'the system' and EVERYTHING to do with Brexit. Without Brexit that doesn't happen, you absolute donk.

It's laughable that now you're faced with financial facts that can't be denied are a direct result of Brexit, you've now decided it's 'the systems' fault. What utter bollocks.

As for 'it's what most expected' - not you sweetheart, as you called all of the economic predictions pre the vote 'project fear' and dismissed them out of hand.

 

Good job you're a civil servant!

 

I know what I said, I wrote it.

It's your spin and addition of 'direct' that typifies your weak, strawman position.