Friday, November 21, 2008

Oil Price Drops 66%


The Big Drop

Who ever thought that oil would ever drop back below $50 a barrel again? Right now it is trading at $48 a barrel. Heating oil, Kerosene, which takes its lead price from Rotterdam Kero, is lagging a long way back but is now selling at a slightly more reasonable €580 per 1000 litre fill. With all this major price dropping, I am wondering what will happen to the price of wood pellets?

Solid fuel prices rose sharply piggy-backing on the price of oil. Will these now follow oil downward again?

Right now it makes no economic sense to invest thousands of Euro in a wood pellet system and end up paying well above the odds for your fuel.


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