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What do the Recent Oil Price Highs Mean for Consumers at the Pump

OilPrice.com-Econbrowser -- Crude oil prices this week reached their highest level since last April. What will that mean for U.S. consumers at the gas pump?

The first question to be clear on is which crude oil price we're talking about. Two of the popular benchmarks are West Texas Intermediate, traded in Oklahoma, and North Sea Brent. Historically these two prices were quite close, and it didn't matter which one you referenced. But due to a lack of adequate transportation infrastructure in the United States, the two prices have diverged significantly over the last year.

My rule of thumb has been that for every $1 increase in the price of a barrel of crude oil, U.S. consumers are likely to pay 2-1/2 more cents for a gallon of gasoline.


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Submitted Feb 23, 2012 By: NOTSOGRN
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: What do the Recent Oil Price Highs Mean for Consumers at the Pump Back to Topics
REPLIES (newest first) Post a Reply
gasper
Champion Author Edmonton

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Message Posted: Feb 23, 2012 10:58:06 AM

Refineries are taking the fuel we have cut down on using and are selling it to other nations for larger profit prices and they say supply and demand well if you are selling our fuel that we have cut down on and selling it to others then we will never ever have a shortage of demand in our country.
BNSF733
Champion Author Chicago

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Message Posted: Feb 23, 2012 10:57:39 AM

It means they own us!
danol43
Champion Author Modesto

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Message Posted: Feb 23, 2012 10:55:44 AM

It means higher prices at the pump, dummy. Speculators will make it so.
dave1745
Champion Author Gary

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Message Posted: Feb 23, 2012 10:55:34 AM

brown bag lunches
1stClicker
Champion Author Texas

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Message Posted: Feb 23, 2012 10:54:48 AM

Prices at the pump are fixed. Speculators have driven up the price of oil. What is it doing to the people? Screwing us.
WebGabe
Champion Author Pennsylvania

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Message Posted: Feb 23, 2012 10:54:07 AM

Higher oil prices => higher gas prices.

Next up: water wet, fire hot.
sciotosix
Champion Author Dayton

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Message Posted: Feb 23, 2012 10:53:35 AM

Isn't the answer obvious?
briandbec
Champion Author Tucson

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Message Posted: Feb 23, 2012 10:53:24 AM

We've got about $1/gal to go before the next recession.

The scene is set to look exactly like the 1970s stagflation. There was the recession of 69 & recovery (except this recession was much, much worse, and the recovery only exists on the stock market meaning that the next dip will be more severe since it will reveal the hollowed out center) followed by the oil embargo, followed by another 8 years of economic misery.
I predict stagflation of the 1970s + unemployment of the 1930s. Hope you're up to date on your adjustable-rate debts!!
Sha10
Veteran Author Toronto

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Message Posted: Feb 23, 2012 10:52:27 AM

It means everyday items will be at higher cost
TAT36
Champion Author Florida

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Message Posted: Feb 23, 2012 10:51:30 AM

Seems like a pretty stupid headline. What do they think a big increase will mean?
lindact
Champion Author New Haven

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Message Posted: Feb 23, 2012 10:49:57 AM

Someone got paid to write this ?!
felinePA
All-Star Author Pennsylvania

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Message Posted: Feb 23, 2012 10:49:53 AM

Soon everyone is going have to use bicycle to work like it or not.
TXryder
Champion Author Texas

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Message Posted: Feb 23, 2012 10:49:16 AM

Retarded article
MrLuigi
Champion Author Massachusetts

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Message Posted: Feb 23, 2012 10:49:11 AM

well I think we all know we're paying a hell of a lot more than their estimates......far more
Bullseye520
Champion Author Louisville

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Message Posted: Feb 23, 2012 10:48:46 AM

HIGHER PRICES, DUH!!!!!!!!!!!!!!!!!!!
pnd1
Champion Author Tallahassee

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Message Posted: Feb 23, 2012 10:46:03 AM

Have a happy retirement on January 20, 2013, Mr. Obama.
Mermaan
Champion Author Boston

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Message Posted: Feb 23, 2012 10:44:26 AM

LOL
Volkswagen62
Sophomore Author Salinas

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Message Posted: Feb 23, 2012 10:44:18 AM

STUPID HEADLINE!!!
mickealo
Champion Author Spokane

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Message Posted: Feb 23, 2012 10:44:06 AM

well thats a hard one ( not ) it means we pay more for those who don't get it
DTrainCanada
Champion Author Saskatoon

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Message Posted: Feb 23, 2012 10:43:36 AM

We'll have to pay more? DUH!
cssco
Champion Author Virginia

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Message Posted: Feb 23, 2012 10:40:25 AM


Do you think this headline writer should be retrained. Living in the dark he may be a better deep shaft coal miner.
Blazer197
Champion Author New Haven

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Message Posted: Feb 23, 2012 10:40:24 AM

YOU DONT SAY SHERLOCK.
PhilnTX
All-Star Author Dallas

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Message Posted: Feb 23, 2012 10:39:26 AM

Glad my two oil wells are making 4 barrels a day!!!
kuma2000
Champion Author Honolulu

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Message Posted: Feb 23, 2012 10:38:29 AM

whatever.
sit
Champion Author Cleveland

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Message Posted: Feb 23, 2012 10:37:45 AM

Sucks the energy out of the economy. Thanks Washington.
ibhenry
Champion Author San Diego

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Message Posted: Feb 23, 2012 10:36:59 AM

BS....
PapaBobP
Veteran Author Detroit

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Message Posted: Feb 23, 2012 10:36:37 AM

One of my stations went from 3.459 for a gallon of regular to 3.659 a gallon in the time it took me to run an errand and come back home. Watched the ABC News last night and the priced jumped .10 cents while the reporter was giving her 5 minute commentary
honkerman
Champion Author San Jose

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Message Posted: Feb 23, 2012 10:34:29 AM

It means spending more money we don't have.
sehonda
Champion Author Honolulu

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Message Posted: Feb 23, 2012 10:33:48 AM

crude oil prices only affect prices at the pump when they go up...
jorobins538
Champion Author Chicago

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Message Posted: Feb 23, 2012 10:33:15 AM

duh.
ciimike
Champion Author Nevada

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Message Posted: Feb 23, 2012 10:33:14 AM

Depends on where you are. However, overall, it will result in higher prices over all in almost everything. With salaries lowered and cost of items increasing, there will definitely need to be more belt tightening going on.
Legend1500
All-Star Author Midland Odessa

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Message Posted: Feb 23, 2012 10:33:03 AM

OK
thepi
All-Star Author Twin Cities

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Message Posted: Feb 23, 2012 10:33:00 AM

Let's try another formula: crude prices increase = gas pump increase..crude prices decrease = gas pump increase!
dale243
Champion Author Dallas

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Message Posted: Feb 23, 2012 10:32:35 AM

Pump prices are driven by fear from the speculators.
mikesr100
Champion Author Sacramento

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Message Posted: Feb 23, 2012 10:31:56 AM

Take the Federal and State Governments out of equation and Gas would drop below $2.00 a gallon. Taxes and over regulation is a hidden Income Tax!
blazerbob91
Champion Author Milwaukee

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Message Posted: Feb 23, 2012 10:31:52 AM

Recession 2.0 here we come.
Old Timer
Champion Author Akron

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Message Posted: Feb 23, 2012 10:31:13 AM

Higher prices on everything. Not good for the economy.
orcar
Champion Author Boise

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Message Posted: Feb 23, 2012 10:31:03 AM

I am not sure the price of oil has to go up before there is a price increase at the pump. It seems to me that the mention of higher oil drives the price up.
Tehbob
Champion Author California

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Message Posted: Feb 23, 2012 10:30:02 AM

its fixed
jessek
Champion Author Detroit

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Message Posted: Feb 23, 2012 10:29:16 AM

We're getting screwed.
chvytruk
All-Star Author Kentucky

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Message Posted: Feb 23, 2012 10:27:51 AM

*Simple: crude up = pump prices up.*~~GreenLegend

HA! Used to be that way! Now it's crude up = pump prices up. Crude down = pump prices up!

[Edited by: chvytruk at 2/23/2012 11:29:44 AM EST]
bullseye100
Champion Author New Jersey

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Message Posted: Feb 23, 2012 10:27:18 AM

I don't need to read this article to answer that question. Neither does anyone else - We are getting raped!
johnnyg1200
Champion Author St. Louis

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Message Posted: Feb 23, 2012 10:26:34 AM

It means I will be staying close to home this summer.
GreenLegend
Champion Author Raleigh

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Message Posted: Feb 23, 2012 10:23:38 AM

Simple: crude up = pump prices up.
us30ride
Champion Author Fort Wayne

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Message Posted: Feb 23, 2012 10:21:08 AM

Don't worry the price will come down once everyone stops buying cars, groceries, houses, and other essential items; but of course everyone will be unemployeed again!
joezIN
Champion Author Gary

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Message Posted: Feb 23, 2012 10:21:04 AM

i wanna trade it too.
pjslyfox
All-Star Author Grand Rapids

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Message Posted: Feb 23, 2012 10:20:44 AM

Only an idiot would write something with that headline!
fxb1
Champion Author Louisiana

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Message Posted: Feb 23, 2012 10:20:02 AM

less food
uptherefiners
Champion Author Chicago

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Message Posted: Feb 23, 2012 10:19:12 AM

qualifies for the "DUH award of the week"
LanguageMan1
Champion Author Tampa

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Message Posted: Feb 23, 2012 10:17:21 AM

Boy, you hit that on the head of the nail there ss70! It also means a big hole in the pocket every where else, like at the grocery store, department store, discount store, etc.

It's also what Obama said would happen if you elect him when he was running before. Higher energy prices result in higher prices for everything else, and our wages aren't keeping pace.

[Edited by: LanguageMan1 at 2/23/2012 11:18:55 AM EST]
egd
Champion Author Twin Cities

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Message Posted: Feb 23, 2012 10:16:54 AM

the refiners are exporting gasoline into the global market because that’s where the greater profits are
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