As of the closing on September 28, the US WTI crude oil futures closed up with 1.13 US, reported 73.25 barrel.

Domestic oil prices link up with international oil prices. Since the current round of pricing, international oil prices have increased with fluctuation and Brent crude oil has broken through the 80 mark and continues to increase.

The oil is priced off the margin.

The Oil Price Opportunity

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World oil prices

The economic feasibility of producing biodiesel in South Africa will always be determined by the ratios among the international price of crude oil, the local diesel price and the prices of oilseeds such as sunflower and soybean.

And the OPEC nations are the ones that price the oil.

The 2005 budget submission had foreseen a higher cost of oil, now a reality.

The Price of Oil in 2015

Oil s Upward March

Speculators at the Pumps

Oil price development

The price of feedstock used in the production of biodiesel relative to petroleum prices is a key determinant in the feasibility of biodiesel.

But if owners of oil reserves think that prices will fall in the long run, they gain an incentive to explore for oil and expand production now in order to sell as much oil as possible before the fall. The resulting supply surge drives down prices, reinforces expectations of further declines, and produces the inverse of a speculative bubble a collapse in prices.

Cheap Oil and Global Growth

Oil Prices and Global Growth

Can High Oil Prices Be Good?

Butter's gone up tuppence a pound.

The weaker US made investing in crude oil, which is priced in US , more attractive, underpinning oil prices for the day.

The oil price goes through the floor. That company goes out of business, and then you can bring the oil price back up.

There is a good chance that gasoline prices will go up.

Price of petrol is 0.35 per litre.

There is a huge amount of gas to be saved, about half the projected gas at about an eighth of its price.

Oil prices may usher in the three consecutive rises , drivers can fill up the tank for National Day self driving travel in advance.

The six fuel distributors maintained the high fuel prices until November 2001 despite the continuing trend of substantial decreases in their fuel purchase prices.

The first factor is the relationship between oil prices and economic growth in the oil producing countries. Higher prices fuel higher growth in these countries, which, accompanied by a population boom, leads to higher domestic energy consumption.

The Geopolitical Impact of Cheap Oil

In my ongoing quest to become better at forecasting, I began, a few years ago, to pay attention to the five year forward oil price as it compares to the Brent crude oil spot price, the price of a barrel of oil today. I suspect that the five year forward price is much less influenced by speculation in the oil market than the spot price, and more representative of true commercial needs.

Finally, there is the relationship between oil prices and fiscal and monetary policies in the oil consuming countries. To combat the effect of high oil prices, consuming countries adopt expansionary economic policies, lowering interest rates and increasing government spending.

That said, OPEC members and oil consuming countries policymakers alike should not forget that nothing cures high prices like high prices.

But the days of cheap oil are over.

A second argument is that higher oil prices are due to lower interest rates and anticipations of higher long term prices. That supposedly reduced supply by encouraging producers to store oil in the ground and pump it later.

The high price of oil was governed by the market and was beyond the control of energy exporting countries.

For example, some oil producing countries ask their customers to pay in euros, but that does not mean that their oil is priced in euros. And even if dollar prices were to be replaced by euro prices, the impact of single currency pricing on the oil market would be the same.

Since the US does not allow exports of crude oil, the shale revolution pushed down the US benchmark price, the West Texas Intermediate, relative to international crude prices, sometimes with differentials as wide as 20. US refiners took advantage of lower prices to increase their exports of petroleum products so much so, that they are now threatening the market share of Saudi refineries in Asia and elsewhere.

Our debates are unfolding against a backdrop of escalating oil prices, whose worst fallout we may have yet to see.

Within a thirty four hour period in May 2001, six fuel distributors considerably increased their sale prices of fuel by almost the same amount within the whole national network of petrol stations.

They thus pose a significant threat of inflation, and the uncertainty about their future course is likely to discourage investment.

So if I had one closing and modest suggestion, let's set a stable oil price in Europe and the United States. How do you do that? Well, let's put a tax on oil that is a non revenue tax, and it basically says for the next 20 years, the price of oil will be whatever you want, 35 bucks, 40 bucks. If the OPEC price falls below that, we tax it. If the OPEC price goes above that, the tax goes away.

The drop in the spot price of oil has taken it significantly below the five year forward price, which remains close to 80 per barrel. My hunch for 2015 is that oil prices may continue to drop in the short term unlike in the past four years, however, they are likely to finish the year higher than they were when it began.

How Does the Weak Dollar Affect Oil Prices?

This time around, instability in the Middle East is far more severe and widespread. But there appears to be no fear premium on oil prices on the contrary, oil prices have declined sharply since 2014.

Today's oil prices are still only two thirds the real peak reached during the Iranian Revolution of 1979, and future markets expect the oil price to fall back and settle at perhaps 45 a barrel. But the current high level of oil prices has led forecasters to start reining in their expectations for economic growth.

A decade later, we have high oil prices, but they are not due to a well designed tax, either in America or elsewhere. As a result, the price boom is boosting windfall profits for the owners of oil deposits rather than improving countries' public finances.