Falklands : GLOBAL FINANCIAL COOL-DOWN ALSO BENEFITS THE FALKLANDS
Submitted by Falkland Islands News Network (Juanita Brock) 24.06.2012 (Article Archived on 08.07.2012)
Both the Wall Street Journal and Reuters report today that prices of Light Sweet Crude and Brent Crude have headed south; and are now at approximately $77.81 for Light Sweet Crude and below $90.00 for Brent Crude.
GLOBAL FINANCIAL COOL-DOWN ALSO BENEFITS THE FALKLANDS
By J. Brock (FINN)
Both the Wall Street Journal and Reuters report today that prices of Light Sweet Crude and Brent Crude have headed south; and are now at approximately $77.81 for Light Sweet Crude and below $90.00 for Brent Crude.
Eventually people in the Falklands who spend too much of their income on hydrocarbons products will feel the benefit of these losses. However, the process is not as straight-forward as one might think.
Fuel bought at higher prices must be factored in with that bought at lower prices, so there will not be a proportional drip in prices at the pump or delivered to the fuel tank. What’s more, prices that local suppliers pay are not proportional either, in that the price paid reflects supplies bought at higher prices on the global market.
Prices have been declining for a few months so the costs of newer supplies should fall soon and benefits will be felt in the Falklands once our more expensive supplies are factored downwards to reflect savings on cheaper ones and sold off.
Unfortunately this will not happen overnight and it could be when the weather is warmer that there will be relief for people who find fuel costs eat into their ability to pay rents or buy food. Hang in there.
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