Not Logged In Log In   Sign Up   Points Leaders
Follow Us    11:41 AM

GasBuddy News Article

59
votes
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.


Read the Full Article

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
Profile Pic
puckster5
All-Star Author Toronto

Posts:946
Points:1,341,435
Joined:Jun 2005
Message Posted: Feb 23, 2012 10:59:34 AM

doh
Profile Pic
gasper
Champion Author Edmonton

Posts:6,766
Points:1,916,780
Joined:Mar 2002
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.
Profile Pic
BNSF733
Champion Author Chicago

Posts:11,005
Points:2,432,390
Joined:Jun 2004
Message Posted: Feb 23, 2012 10:57:39 AM

It means they own us!
Profile Pic
danol43
Champion Author Modesto

Posts:2,704
Points:1,056,480
Joined:May 2011
Message Posted: Feb 23, 2012 10:55:44 AM

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

Posts:2,110
Points:1,152,100
Joined:Dec 2010
Message Posted: Feb 23, 2012 10:55:34 AM

brown bag lunches
Profile Pic
1stClicker
Champion Author Texas

Posts:7,905
Points:2,845,660
Joined:Oct 2005
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.
Profile Pic
WebGabe
Champion Author Pennsylvania

Posts:4,977
Points:1,097,145
Joined:Jun 2007
Message Posted: Feb 23, 2012 10:54:07 AM

Higher oil prices => higher gas prices.

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

Posts:5,346
Points:1,271,550
Joined:Apr 2011
Message Posted: Feb 23, 2012 10:53:35 AM

Isn't the answer obvious?
Profile Pic
briandbec
Champion Author Tucson

Posts:6,921
Points:1,044,870
Joined:Aug 2011
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!!
Profile Pic
Sha10
Veteran Author Toronto

Posts:324
Points:226,265
Joined:Apr 2010
Message Posted: Feb 23, 2012 10:52:27 AM

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

Posts:9,470
Points:1,899,815
Joined:Sep 2009
Message Posted: Feb 23, 2012 10:51:30 AM

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

Posts:11,200
Points:2,288,195
Joined:May 2008
Message Posted: Feb 23, 2012 10:49:57 AM

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

Posts:580
Points:41,105
Joined:Aug 2011
Message Posted: Feb 23, 2012 10:49:53 AM

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

Posts:5,777
Points:1,025,105
Joined:Jan 2012
Message Posted: Feb 23, 2012 10:49:16 AM

Retarded article
Profile Pic
MrLuigi
Champion Author Massachusetts

Posts:7,345
Points:1,565,235
Joined:Jun 2005
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
Profile Pic
Bullseye520
Champion Author Louisville

Posts:4,732
Points:1,257,505
Joined:Apr 2011
Message Posted: Feb 23, 2012 10:48:46 AM

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

Posts:5,201
Points:1,065,110
Joined:Jul 2009
Message Posted: Feb 23, 2012 10:46:03 AM

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

Posts:1,572
Points:421,235
Joined:Apr 2011
Message Posted: Feb 23, 2012 10:44:26 AM

LOL
Profile Pic
Volkswagen62
Sophomore Author Salinas

Posts:227
Points:1,213,495
Joined:Nov 2010
Message Posted: Feb 23, 2012 10:44:18 AM

STUPID HEADLINE!!!
Profile Pic
mickealo
Champion Author Spokane

Posts:8,581
Points:2,697,690
Joined:Oct 2006
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
Profile Pic
DTrainCanada
Champion Author Saskatoon

Posts:3,995
Points:2,014,375
Joined:Aug 2005
Message Posted: Feb 23, 2012 10:43:36 AM

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

Posts:9,827
Points:2,343,675
Joined:Feb 2006
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.
Profile Pic
Blazer197
Champion Author New Haven

Posts:3,581
Points:751,605
Joined:Feb 2009
Message Posted: Feb 23, 2012 10:40:24 AM

YOU DONT SAY SHERLOCK.
Profile Pic
PhilnTX
All-Star Author Dallas

Posts:798
Points:905,990
Joined:Sep 2011
Message Posted: Feb 23, 2012 10:39:26 AM

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

Posts:5,897
Points:1,274,250
Joined:Jun 2011
Message Posted: Feb 23, 2012 10:38:29 AM

whatever.
Profile Pic
sit
Champion Author Cleveland

Posts:7,669
Points:2,530,620
Joined:Feb 2006
Message Posted: Feb 23, 2012 10:37:45 AM

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

Posts:1,536
Points:480,745
Joined:Jun 2011
Message Posted: Feb 23, 2012 10:36:59 AM

BS....
Profile Pic
PapaBobP
Veteran Author Detroit

Posts:483
Points:249,090
Joined:Apr 2011
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
Profile Pic
honkerman
Champion Author San Jose

Posts:61,124
Points:3,002,755
Joined:Jul 2004
Message Posted: Feb 23, 2012 10:34:29 AM

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

Posts:3,022
Points:1,155,890
Joined:May 2009
Message Posted: Feb 23, 2012 10:33:48 AM

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

Posts:5,463
Points:875,380
Joined:Sep 2009
Message Posted: Feb 23, 2012 10:33:15 AM

duh.
Profile Pic
ciimike
Champion Author Nevada

Posts:4,731
Points:1,183,030
Joined:Aug 2005
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.
Profile Pic
Legend1500
All-Star Author Midland Odessa

Posts:965
Points:629,045
Joined:Jun 2011
Message Posted: Feb 23, 2012 10:33:03 AM

OK
Profile Pic
thepi
All-Star Author Twin Cities

Posts:847
Points:1,826,880
Joined:Nov 2001
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!
Profile Pic
dale243
Champion Author Dallas

Posts:1,000
Points:1,190,760
Joined:Jan 2011
Message Posted: Feb 23, 2012 10:32:35 AM

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

Posts:6,514
Points:1,686,590
Joined:Apr 2008
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!
Profile Pic
blazerbob91
Champion Author Milwaukee

Posts:7,089
Points:2,446,945
Joined:Aug 2005
Message Posted: Feb 23, 2012 10:31:52 AM

Recession 2.0 here we come.
Profile Pic
Old Timer
Champion Author Akron

Posts:6,255
Points:1,853,620
Joined:Sep 2003
Message Posted: Feb 23, 2012 10:31:13 AM

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

Posts:2,470
Points:1,265,510
Joined:Jun 2010
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.
Profile Pic
Tehbob
Champion Author California

Posts:4,677
Points:1,035,950
Joined:Jan 2012
Message Posted: Feb 23, 2012 10:30:02 AM

its fixed
Profile Pic
jessek
Champion Author Detroit

Posts:2,657
Points:1,280,490
Joined:Sep 2008
Message Posted: Feb 23, 2012 10:29:16 AM

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

Posts:806
Points:411,335
Joined:Sep 2006
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]
Profile Pic
bullseye100
Champion Author New Jersey

Posts:3,660
Points:1,081,745
Joined:Aug 2011
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!
Profile Pic
johnnyg1200
Champion Author St. Louis

Posts:8,406
Points:1,240,245
Joined:May 2011
Message Posted: Feb 23, 2012 10:26:34 AM

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

Posts:2,007
Points:442,730
Joined:Jan 2009
Message Posted: Feb 23, 2012 10:23:38 AM

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

Posts:5,634
Points:1,239,080
Joined:Apr 2011
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!
Profile Pic
joezIN
Champion Author Gary

Posts:3,711
Points:827,210
Joined:May 2011
Message Posted: Feb 23, 2012 10:21:04 AM

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

Posts:946
Points:1,128,880
Joined:Feb 2006
Message Posted: Feb 23, 2012 10:20:44 AM

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

Posts:3,484
Points:1,100,660
Joined:Mar 2011
Message Posted: Feb 23, 2012 10:20:02 AM

less food
Profile Pic
uptherefiners
Champion Author Chicago

Posts:5,055
Points:1,003,000
Joined:Jun 2006
Message Posted: Feb 23, 2012 10:19:12 AM

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

Posts:15,932
Points:2,266,565
Joined:Apr 2008
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]
Post a reply Back to Topics