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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

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puckster5 All-Star Author Toronto Posts:923 Points:828,900 Joined:Jun 2005	Message Posted: Feb 23, 2012 10:59:34 AM Ignore puckster5 Report Abuse doh
gasper Champion Author Edmonton Posts:4,480 Points:1,367,335 Joined:Mar 2002	Message Posted: Feb 23, 2012 10:58:06 AM Ignore gasper Report Abuse 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 Posts:8,385 Points:1,823,275 Joined:Jun 2004	Message Posted: Feb 23, 2012 10:57:39 AM Ignore BNSF733 Report Abuse It means they own us!
danol43 Champion Author Modesto Posts:1,697 Points:586,680 Joined:May 2011	Message Posted: Feb 23, 2012 10:55:44 AM Ignore danol43 Report Abuse It means higher prices at the pump, dummy. Speculators will make it so.
dave1745 Champion Author Gary Posts:1,262 Points:735,500 Joined:Dec 2010	Message Posted: Feb 23, 2012 10:55:34 AM Ignore dave1745 Report Abuse brown bag lunches
1stClicker Champion Author Texas Posts:5,301 Points:2,240,620 Joined:Oct 2005	Message Posted: Feb 23, 2012 10:54:48 AM Ignore 1stClicker Report Abuse 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 Posts:2,354 Points:493,695 Joined:Jun 2007	Message Posted: Feb 23, 2012 10:54:07 AM Ignore WebGabe Report Abuse Higher oil prices => higher gas prices. Next up: water wet, fire hot.
sciotosix Champion Author Dayton Posts:2,734 Points:663,200 Joined:Apr 2011	Message Posted: Feb 23, 2012 10:53:35 AM Ignore sciotosix Report Abuse Isn't the answer obvious?
briandbec Champion Author Tucson Posts:4,229 Points:497,340 Joined:Aug 2011	Message Posted: Feb 23, 2012 10:53:24 AM Ignore briandbec Report Abuse 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 Posts:322 Points:158,575 Joined:Apr 2010	Message Posted: Feb 23, 2012 10:52:27 AM Ignore Sha10 Report Abuse It means everyday items will be at higher cost
TAT36 Champion Author Florida Posts:6,789 Points:1,301,075 Joined:Sep 2009	Message Posted: Feb 23, 2012 10:51:30 AM Ignore TAT36 Report Abuse Seems like a pretty stupid headline. What do they think a big increase will mean?
lindact Champion Author New Haven Posts:8,721 Points:1,714,045 Joined:May 2008	Message Posted: Feb 23, 2012 10:49:57 AM Ignore lindact Report Abuse Someone got paid to write this ?!
felinePA All-Star Author Pennsylvania Posts:580 Points:41,105 Joined:Aug 2011	Message Posted: Feb 23, 2012 10:49:53 AM Ignore felinePA Report Abuse Soon everyone is going have to use bicycle to work like it or not.
TXryder Champion Author Texas Posts:2,691 Points:429,705 Joined:Jan 2012	Message Posted: Feb 23, 2012 10:49:16 AM Ignore TXryder Report Abuse Retarded article
MrLuigi Champion Author Massachusetts Posts:4,758 Points:963,760 Joined:Jun 2005	Message Posted: Feb 23, 2012 10:49:11 AM Ignore MrLuigi Report Abuse well I think we all know we're paying a hell of a lot more than their estimates......far more
Bullseye520 Champion Author Louisville Posts:2,182 Points:664,465 Joined:Apr 2011	Message Posted: Feb 23, 2012 10:48:46 AM Ignore Bullseye520 Report Abuse HIGHER PRICES, DUH!!!!!!!!!!!!!!!!!!!
pnd1 Champion Author Tallahassee Posts:5,201 Points:1,065,110 Joined:Jul 2009	Message Posted: Feb 23, 2012 10:46:03 AM Ignore pnd1 Report Abuse Have a happy retirement on January 20, 2013, Mr. Obama.
Mermaan Champion Author Boston Posts:1,572 Points:421,235 Joined:Apr 2011	Message Posted: Feb 23, 2012 10:44:26 AM Ignore Mermaan Report Abuse LOL
Volkswagen62 Sophomore Author Salinas Posts:192 Points:660,320 Joined:Nov 2010	Message Posted: Feb 23, 2012 10:44:18 AM Ignore Volkswagen62 Report Abuse STUPID HEADLINE!!!
mickealo Champion Author Spokane Posts:6,147 Points:2,141,510 Joined:Oct 2006	Message Posted: Feb 23, 2012 10:44:06 AM Ignore mickealo Report Abuse well thats a hard one ( not ) it means we pay more for those who don't get it
DTrainCanada Champion Author Saskatoon Posts:1,848 Points:1,418,075 Joined:Aug 2005	Message Posted: Feb 23, 2012 10:43:36 AM Ignore DTrainCanada Report Abuse We'll have to pay more? DUH!
cssco Champion Author Virginia Posts:7,311 Points:1,748,605 Joined:Feb 2006	Message Posted: Feb 23, 2012 10:40:25 AM Ignore cssco Report Abuse 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 Posts:3,240 Points:615,150 Joined:Feb 2009	Message Posted: Feb 23, 2012 10:40:24 AM Ignore Blazer197 Report Abuse YOU DONT SAY SHERLOCK.
PhilnTX All-Star Author Dallas Posts:656 Points:433,605 Joined:Sep 2011	Message Posted: Feb 23, 2012 10:39:26 AM Ignore PhilnTX Report Abuse Glad my two oil wells are making 4 barrels a day!!!
kuma2000 Champion Author Honolulu Posts:3,208 Points:671,225 Joined:Jun 2011	Message Posted: Feb 23, 2012 10:38:29 AM Ignore kuma2000 Report Abuse whatever.
sit Champion Author Cleveland Posts:5,190 Points:1,930,020 Joined:Feb 2006	Message Posted: Feb 23, 2012 10:37:45 AM Ignore sit Report Abuse Sucks the energy out of the economy. Thanks Washington.
ibhenry Champion Author San Diego Posts:1,536 Points:456,445 Joined:Jun 2011	Message Posted: Feb 23, 2012 10:36:59 AM Ignore ibhenry Report Abuse BS....
PapaBobP Veteran Author Detroit Posts:470 Points:231,045 Joined:Apr 2011	Message Posted: Feb 23, 2012 10:36:37 AM Ignore PapaBobP Report Abuse 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 Posts:44,179 Points:2,394,170 Joined:Jul 2004	Message Posted: Feb 23, 2012 10:34:29 AM Ignore honkerman Report Abuse It means spending more money we don't have.
sehonda Champion Author Honolulu Posts:2,028 Points:914,060 Joined:May 2009	Message Posted: Feb 23, 2012 10:33:48 AM Ignore sehonda Report Abuse crude oil prices only affect prices at the pump when they go up...
jorobins538 Champion Author Chicago Posts:4,722 Points:636,270 Joined:Sep 2009	Message Posted: Feb 23, 2012 10:33:15 AM Ignore jorobins538 Report Abuse duh.
ciimike Champion Author Nevada Posts:4,638 Points:1,061,310 Joined:Aug 2005	Message Posted: Feb 23, 2012 10:33:14 AM Ignore ciimike Report Abuse 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 Posts:964 Points:567,375 Joined:Jun 2011	Message Posted: Feb 23, 2012 10:33:03 AM Ignore Legend1500 Report Abuse OK
thepi All-Star Author Twin Cities Posts:745 Points:1,337,940 Joined:Nov 2001	Message Posted: Feb 23, 2012 10:33:00 AM Ignore thepi Report Abuse Let's try another formula: crude prices increase = gas pump increase..crude prices decrease = gas pump increase!
dale243 All-Star Author Dallas Posts:972 Points:676,000 Joined:Jan 2011	Message Posted: Feb 23, 2012 10:32:35 AM Ignore dale243 Report Abuse Pump prices are driven by fear from the speculators.
mikesr100 Champion Author Sacramento Posts:3,878 Points:1,077,810 Joined:Apr 2008	Message Posted: Feb 23, 2012 10:31:56 AM Ignore mikesr100 Report Abuse 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 Posts:6,125 Points:1,880,270 Joined:Aug 2005	Message Posted: Feb 23, 2012 10:31:52 AM Ignore blazerbob91 Report Abuse Recession 2.0 here we come.
Old Timer Champion Author Akron Posts:3,727 Points:1,260,090 Joined:Sep 2003	Message Posted: Feb 23, 2012 10:31:13 AM Ignore Old Timer Report Abuse Higher prices on everything. Not good for the economy.
orcar Champion Author Boise Posts:2,043 Points:774,740 Joined:Jun 2010	Message Posted: Feb 23, 2012 10:31:03 AM Ignore orcar Report Abuse 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 Posts:2,281 Points:454,680 Joined:Jan 2012	Message Posted: Feb 23, 2012 10:30:02 AM Ignore Tehbob Report Abuse its fixed
jessek Champion Author Detroit Posts:2,657 Points:1,280,490 Joined:Sep 2008	Message Posted: Feb 23, 2012 10:29:16 AM Ignore jessek Report Abuse We're getting screwed.
chvytruk All-Star Author Kentucky Posts:771 Points:377,710 Joined:Sep 2006	Message Posted: Feb 23, 2012 10:27:51 AM Ignore chvytruk Report Abuse 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 Posts:2,414 Points:581,555 Joined:Aug 2011	Message Posted: Feb 23, 2012 10:27:18 AM Ignore bullseye100 Report Abuse 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 Posts:4,113 Points:641,520 Joined:May 2011	Message Posted: Feb 23, 2012 10:26:34 AM Ignore johnnyg1200 Report Abuse It means I will be staying close to home this summer.
GreenLegend Champion Author Raleigh Posts:1,640 Points:398,385 Joined:Jan 2009	Message Posted: Feb 23, 2012 10:23:38 AM Ignore GreenLegend Report Abuse Simple: crude up = pump prices up.
us30ride Champion Author Fort Wayne Posts:3,315 Points:709,610 Joined:Apr 2011	Message Posted: Feb 23, 2012 10:21:08 AM Ignore us30ride Report Abuse 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 Posts:1,663 Points:331,810 Joined:May 2011	Message Posted: Feb 23, 2012 10:21:04 AM Ignore joezIN Report Abuse i wanna trade it too.
pjslyfox All-Star Author Grand Rapids Posts:781 Points:957,230 Joined:Feb 2006	Message Posted: Feb 23, 2012 10:20:44 AM Ignore pjslyfox Report Abuse Only an idiot would write something with that headline!
fxb1 Champion Author Louisiana Posts:2,533 Points:603,235 Joined:Mar 2011	Message Posted: Feb 23, 2012 10:20:02 AM Ignore fxb1 Report Abuse less food
uptherefiners Champion Author Chicago Posts:5,048 Points:1,002,000 Joined:Jun 2006	Message Posted: Feb 23, 2012 10:19:12 AM Ignore uptherefiners Report Abuse qualifies for the "DUH award of the week"
LanguageMan1 Champion Author Tampa Posts:11,707 Points:1,658,865 Joined:Apr 2008	Message Posted: Feb 23, 2012 10:17:21 AM Ignore LanguageMan1 Report Abuse 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]