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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
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jerej829
Champion Author Memphis

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Message Posted: Feb 24, 2012 10:30:01 AM

YOU'RE SCREWED!!!!!!!!!!!!!!!!!!!!!!!!!!!
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tomok
Champion Author Portland

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Message Posted: Feb 24, 2012 3:09:09 AM

What do the Recent Oil Price Highs Mean for Consumers at the Pump, it means people will pay more for fuel at the pump and less money for other things. DUH!
Big oil exports fuel and natural gas to the world for higher profits. Barry supports natural gas and oil production for sale to the world to help pay for his *spending gone wild* addiction. Speculators, manipulators and the banks continue to unfairly and unjustly make the driving public pay higher prices at the pump for their benefit.
Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. Consider using ‘other’ forms of transportation to help lower your cost.
The price of fuel at the pump is too high!
12/22/2012!
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rjhenn
Champion Author Des Moines

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Message Posted: Feb 23, 2012 11:29:29 PM

indyjim - "Here's a thought.................Obama should hire one person for each gas station in America and provide them with a shotgun. Tens of thousands of jobs would be created. And what would those people do with the gun, you ask? Every time the gas station owner raised the price of gas, the new worker would fill his rear end with buckshot as a dissuasion. Unemployment drops, gas prices stabilize, and Obama's ratings improve. Everybody wins except for the US citizen.............we just can't afford another four years of Obama."

That just reeks of misconceptions, but I'll only address one of them. Gas station operators don't set the price of gasoline. Usually their suppliers do.
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indyjim
Champion Author Indianapolis

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Message Posted: Feb 23, 2012 9:45:52 PM

Here's a thought.................Obama should hire one person for each gas station in America and provide them with a shotgun. Tens of thousands of jobs would be created. And what would those people do with the gun, you ask? Every time the gas station owner raised the price of gas, the new worker would fill his rear end with buckshot as a dissuasion. Unemployment drops, gas prices stabilize, and Obama's ratings improve. Everybody wins except for the US citizen.............we just can't afford another four years of Obama.
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Tomeboy
Champion Author Twin Cities

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Message Posted: Feb 23, 2012 6:19:07 PM

“Good Time Consumer’s Got The Blues”

Everybody's goin' to pay
Said they’re not movin’ to LA
There are a lot of souls I know around
Gas prices to high… Just stayin in town

Some use to catch the freight, some caught a plane
Forget the sunshine, feel our pain
They say this article is a waste of time
I guess they're right, it's wastin' mine

Some gotta win (Speculators), Some gotta lose (You and me)
Good time consumer's got the blues
Good time consumer's got the blues

Ya know my heart keeps tellin' me
"The price of gas… it’s killin you... and me"
"Ya drive around, ya pay the price"
"Ya sit around, you lose your life"

We got our pills to ease the pain
Can't find a thing to ease the brain
We’d love to try and settle down
But gas prices are not comin down

Some gotta win (oil companies), Some gotta lose (You and me)
Good time consumer's got the blues
Good time consumer's got the blues
Good time consumer's got the blues



[Edited by: Tomeboy at 2/23/2012 6:19:51 PM EST]
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snappytom2
Champion Author Corpus Christi

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Message Posted: Feb 23, 2012 5:22:46 PM

Nationalize the oil companies and the large banks. That will stop this crap right now. Put the oil company big boys into GS8 positions. If they squawk, fire them. That is what wonder-boy Romney would do. It is the Bain Capital way of doing business.
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goalie1950
Champion Author Phoenix

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Message Posted: Feb 23, 2012 4:52:45 PM

Get ready to empty your piggy bank out to fill your car up with gas.
Another round of high gas prices that will fill the pockets of the greedy oil companies.
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GatorGuy
Champion Author Columbia

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Message Posted: Feb 23, 2012 4:52:24 PM

We get hosed.
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djm5x9
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Message Posted: Feb 23, 2012 4:48:38 PM

THEY ARE SCREWED!
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PADI
Champion Author Ontario

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Message Posted: Feb 23, 2012 4:46:17 PM

Dig deeper!
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dacofa
Champion Author Nevada

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Message Posted: Feb 23, 2012 4:45:23 PM

YOU'RE SCREWED
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skeeterbait
Veteran Author Knoxville

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Message Posted: Feb 23, 2012 4:43:36 PM

It doesn't really matter which crude oil that is being compared now because the price is already outrageous and getting worse.
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Gramps001
Champion Author North Carolina

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Message Posted: Feb 23, 2012 4:42:54 PM

PAIN AT THE PUMPS!
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snappytom2
Champion Author Corpus Christi

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Message Posted: Feb 23, 2012 4:41:05 PM

It means more money for the Republican campaign war chests. And, you get to contribute, whether you want to or not, every time that you gas up. Thank you Supreme Court for the blessings of your "Citizens United" anti-democracy decision. And, Chief Justice John Roberts is not even handing out aspirin for safe sex.
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BoerneWatch
Champion Author San Antonio

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Message Posted: Feb 23, 2012 4:30:06 PM

This is one for Jay Leno.
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caddilac
Champion Author Ontario

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Message Posted: Feb 23, 2012 4:23:47 PM

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

What a stupid thing to ask.

It is OBVIOUS what it will mean at the pumps, GASOLINE PRICES WILL GO UP.

"The first question to be clear on is which crude oil price we're talking about."

It doesn't matter which oil price they are talking about, when ANY OIL PRICE goes up then gasoline prices go up....and it doesn't matter one iota if it is West Texas Intermediate or if it is North Sea Brent.

If either or both go up gasoline prices go up automatically.



[Edited by: caddilac at 2/23/2012 4:26:31 PM EST]
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DCbeachbum
Champion Author South Carolina

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Message Posted: Feb 23, 2012 4:19:13 PM

Looks like conserving is the keyword again.
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julius1st4
Champion Author Ontario

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Message Posted: Feb 23, 2012 4:00:01 PM

This really is a "No Brainer" If the price of OIL goes UP ; then it follows [to reason] that the price @ the PUMPS will invariably "INCREASE"
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jb107
Champion Author New Jersey

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Message Posted: Feb 23, 2012 3:56:23 PM

Our pump prices are going up almost every day.
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reidlej
Champion Author Columbus

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Message Posted: Feb 23, 2012 3:54:35 PM

It means more pain at the pump!
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srchr
Champion Author San Jose

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Message Posted: Feb 23, 2012 3:51:55 PM

economic slump redux
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seabrz7
Champion Author California

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Message Posted: Feb 23, 2012 3:51:31 PM

Look how much our food costs have risen since gas has gone up in the last 3 years. The current rise will drive it farther. We won't be able to afford anything at this rate.
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KWM2011
Champion Author Ontario

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Message Posted: Feb 23, 2012 3:50:18 PM

It will never stop rising.
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cheap59
Champion Author Michigan

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Message Posted: Feb 23, 2012 3:49:40 PM

We pay more??
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mfeldstein
Champion Author Ottawa

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Message Posted: Feb 23, 2012 3:49:27 PM

Higher oil prices, with a bit of lag time, mean refiners will up their prices (and widen their margins).
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khareabhishek
All-Star Author Milwaukee

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Message Posted: Feb 23, 2012 3:46:33 PM

The problem is the price rise and the difference is all because of Speculation that government will not be able to control the risk of iran threat and control the prices.
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unicornpmb
Champion Author Buffalo

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Message Posted: Feb 23, 2012 3:43:33 PM

It means paying more for gas.
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Gasazhunter
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Message Posted: Feb 23, 2012 3:43:16 PM

Pay more.
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fullauto
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Message Posted: Feb 23, 2012 3:42:25 PM

highr
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s6sputnik
Champion Author Austin

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Message Posted: Feb 23, 2012 3:40:51 PM

Bummer!
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3912
All-Star Author Virginia Beach

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Message Posted: Feb 23, 2012 3:36:03 PM

It means less disposable income for people to use buying things that ultimately create jobs. At least that is what my Econ 101 Professor claimed. :)
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EricSorenW
Rookie Author Florida

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Message Posted: Feb 23, 2012 3:35:21 PM

I'm seeing our pump prices at a much higher rise!
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bell05
Champion Author Atlanta

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Message Posted: Feb 23, 2012 3:34:15 PM

Well Skunk63, looks like you scored another one.
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smoketown
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Message Posted: Feb 23, 2012 3:31:01 PM

One week it does not mean anything the next it changes back............
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singlemom27
Champion Author Ventura

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Message Posted: Feb 23, 2012 3:30:50 PM

it means everything goes up, not just gas prices...food, clothing, shelter, ...
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redtruck01
Champion Author North Carolina

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Message Posted: Feb 23, 2012 3:30:44 PM

Bend over!
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Skunk63
Champion Author Phoenix

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Message Posted: Feb 23, 2012 3:30:32 PM

There are no guarantees in life. We've all been lucky to live through the days of cheap gas. Those days are long gone and never coming back. At least not as long as we don't open up our own lands and coasts in their entirety to drilling.
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rpr77
Champion Author Philadelphia

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Message Posted: Feb 23, 2012 3:28:42 PM

ok
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boatcrazyinme
Champion Author Maine

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Message Posted: Feb 23, 2012 3:25:21 PM

too much money.
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h2ojumper
Champion Author Austin

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Message Posted: Feb 23, 2012 3:21:19 PM

what doesnt mean higher gas prices? A significant drop in demand? No. A robust supply? No. Exporting our surplus??? NO.
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10k
Champion Author North Carolina

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Message Posted: Feb 23, 2012 3:20:37 PM

wild3bill:

couldn't be stated any better or plainer-it's time for the citizens to take back our country, while we still have a country to take back..nobama will be king over the wastelands soon..
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gasman50
Champion Author Portland

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Message Posted: Feb 23, 2012 3:20:15 PM

It's going to get very ugly......
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Audioquest
Champion Author London

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Message Posted: Feb 23, 2012 3:19:49 PM

It means if the oil speculators, OPEC and Big Oil continue down this path, we're headed for another recession.

Speculative trading on commodities futures has to end.
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BigBillMI
All-Star Author Detroit

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Message Posted: Feb 23, 2012 3:19:24 PM

i know, lets keep voting for OBAMA And the dems
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wild3bill
Champion Author New York

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Message Posted: Feb 23, 2012 3:14:04 PM

Either the US Gov't breaks up the Big Oil Monopoly the way it was done 100 years ago. Or some other historian will list this as one of the causes of the Former United States that went into Afganistan which was the booby trap we used to overthrow the Former Soviet Union.In V is for Vendetta they say the Gov't should be afraid of their citizens.The people being taken by the Big Oil Monopoly means the current Gov't has a lot to be afraid of.
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Yankee829
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Message Posted: Feb 23, 2012 3:10:56 PM

Bend over...
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big_mac64
Champion Author Tennessee

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Message Posted: Feb 23, 2012 3:10:25 PM

Yeah, but gas went up when oil prices went unchanged for so long...
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MG_Sputnik
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Message Posted: Feb 23, 2012 3:09:04 PM

What does it mean? What idiot wrote this article?
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4TIGERDOG
Sophomore Author Phoenix

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Message Posted: Feb 23, 2012 3:08:19 PM

HIGHER PRICES?
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gils
Champion Author Ohio

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Message Posted: Feb 23, 2012 3:07:57 PM

more money coming out of my pocket.
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