Was offline past few days so just responding
It would appear to be a deliberate ploy by OPEC to throttle the US shale industry.
@ernie the lowest cost US Shale Oil costs about $40 a barrel (average is higher but still below $70, the point with the US is that will buy domestically as first choice and now with shale they have a choice). It’s not just about production costs though its about what the countries need revenue wise from Oil. Saudi needs a price of $90 to balance it’s budget, a lot of middle eastern countries are in a similar position (Iran is off he charts as they need $130)
The big loser in this is Russia, they need $110 to balance their budget and with the financial markets cut off due to sanctions they are in trouble. Their currency has fallen 30% and their economy is heading for a deep recession.
If prices average $95 (ie way way above where they are today) airlines globally could make an extra $15bn in profits.
@thisisnot – I don’t follow the pump prices as I use so little petrol (3,000 miles pa) so that’s an interesting stat. I do fear an increase in taxes is on the way