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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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jerej829 Champion Author Memphis Posts:1,206 Points:343,770 Joined:May 2011	Message Posted: Feb 24, 2012 10:30:01 AM Ignore jerej829 Report Abuse YOU'RE SCREWED!!!!!!!!!!!!!!!!!!!!!!!!!!!
tomok Champion Author Portland Posts:26,108 Points:1,986,385 Joined:Aug 2006	Message Posted: Feb 24, 2012 3:09:09 AM Ignore tomok Report Abuse 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!
rjhenn Champion Author Des Moines Posts:18,269 Points:1,876,170 Joined:Aug 2005	Message Posted: Feb 23, 2012 11:29:29 PM Ignore rjhenn Report Abuse 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.
indyjim Champion Author Indianapolis Posts:7,968 Points:1,963,410 Joined:Jul 2006	Message Posted: Feb 23, 2012 9:45:52 PM Ignore indyjim Report Abuse 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.
Tomeboy Champion Author Twin Cities Posts:1,531 Points:201,500 Joined:Apr 2009	Message Posted: Feb 23, 2012 6:19:07 PM Ignore Tomeboy Report Abuse “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]
snappytom2 Champion Author Corpus Christi Posts:2,165 Points:201,260 Joined:Jul 2008	Message Posted: Feb 23, 2012 5:22:46 PM Ignore snappytom2 Report Abuse 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.
goalie1950 Champion Author Phoenix Posts:4,586 Points:937,470 Joined:Oct 2009	Message Posted: Feb 23, 2012 4:52:45 PM Ignore goalie1950 Report Abuse 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.
GatorGuy Champion Author Columbia Posts:1,427 Points:910,490 Joined:Jan 2009	Message Posted: Feb 23, 2012 4:52:24 PM Ignore GatorGuy Report Abuse We get hosed.
djm5x9 Champion Author Atlanta Posts:1,843 Points:497,305 Joined:Nov 2010	Message Posted: Feb 23, 2012 4:48:38 PM Ignore djm5x9 Report Abuse THEY ARE SCREWED!
PADI Champion Author Ontario Posts:4,378 Points:1,110,315 Joined:Nov 2008	Message Posted: Feb 23, 2012 4:46:17 PM Ignore PADI Report Abuse Dig deeper!
dacofa Champion Author Nevada Posts:3,755 Points:802,010 Joined:Jan 2010	Message Posted: Feb 23, 2012 4:45:23 PM Ignore dacofa Report Abuse YOU'RE SCREWED
skeeterbait Veteran Author Knoxville Posts:300 Points:228,325 Joined:May 2009	Message Posted: Feb 23, 2012 4:43:36 PM Ignore skeeterbait Report Abuse It doesn't really matter which crude oil that is being compared now because the price is already outrageous and getting worse.
Gramps001 Champion Author North Carolina Posts:4,392 Points:1,113,725 Joined:Feb 2007	Message Posted: Feb 23, 2012 4:42:54 PM Ignore Gramps001 Report Abuse PAIN AT THE PUMPS!
snappytom2 Champion Author Corpus Christi Posts:2,165 Points:201,260 Joined:Jul 2008	Message Posted: Feb 23, 2012 4:41:05 PM Ignore snappytom2 Report Abuse 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.
BoerneWatch Champion Author San Antonio Posts:13,528 Points:2,095,040 Joined:Oct 2005	Message Posted: Feb 23, 2012 4:30:06 PM Ignore BoerneWatch Report Abuse This is one for Jay Leno.
caddilac Champion Author Ontario Posts:14,458 Points:1,780,355 Joined:Apr 2007	Message Posted: Feb 23, 2012 4:23:47 PM Ignore caddilac Report Abuse "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]
DCbeachbum Champion Author South Carolina Posts:2,007 Points:607,585 Joined:May 2010	Message Posted: Feb 23, 2012 4:19:13 PM Ignore DCbeachbum Report Abuse Looks like conserving is the keyword again.
julius1st4 Champion Author Ontario Posts:3,411 Points:1,068,685 Joined:Jul 2003	Message Posted: Feb 23, 2012 4:00:01 PM Ignore julius1st4 Report Abuse 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"
jb107 Champion Author New Jersey Posts:7,758 Points:2,262,525 Joined:Sep 2005	Message Posted: Feb 23, 2012 3:56:23 PM Ignore jb107 Report Abuse Our pump prices are going up almost every day.
reidlej Veteran Author Columbus Posts:359 Points:284,545 Joined:Jul 2011	Message Posted: Feb 23, 2012 3:54:35 PM Ignore reidlej Report Abuse It means more pain at the pump!
srchr Champion Author San Jose Posts:5,401 Points:1,263,670 Joined:Apr 2008	Message Posted: Feb 23, 2012 3:51:55 PM Ignore srchr Report Abuse economic slump redux
seabrz7 Veteran Author California Posts:440 Points:71,220 Joined:Feb 2012	Message Posted: Feb 23, 2012 3:51:31 PM Ignore seabrz7 Report Abuse 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.
KWM2011 Champion Author Ontario Posts:1,451 Points:351,850 Joined:May 2011	Message Posted: Feb 23, 2012 3:50:18 PM Ignore KWM2011 Report Abuse It will never stop rising.
cheap59 Champion Author Michigan Posts:2,695 Points:622,570 Joined:May 2010	Message Posted: Feb 23, 2012 3:49:40 PM Ignore cheap59 Report Abuse We pay more??
mfeldstein Champion Author Ottawa Posts:6,609 Points:1,620,710 Joined:Feb 2007	Message Posted: Feb 23, 2012 3:49:27 PM Ignore mfeldstein Report Abuse Higher oil prices, with a bit of lag time, mean refiners will up their prices (and widen their margins).
khareabhishek All-Star Author Milwaukee Posts:645 Points:267,690 Joined:Feb 2010	Message Posted: Feb 23, 2012 3:46:33 PM Ignore khareabhishek Report Abuse 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.
unicornpmb Champion Author Buffalo Posts:6,662 Points:1,269,400 Joined:Sep 2005	Message Posted: Feb 23, 2012 3:43:33 PM Ignore unicornpmb Report Abuse It means paying more for gas.
Gasazhunter Champion Author Phoenix Posts:2,392 Points:668,635 Joined:May 2010	Message Posted: Feb 23, 2012 3:43:16 PM Ignore Gasazhunter Report Abuse Pay more.
fullauto Champion Author Reading Posts:3,792 Points:1,164,220 Joined:Apr 2008	Message Posted: Feb 23, 2012 3:42:25 PM Ignore fullauto Report Abuse highr
s6sputnik Champion Author Austin Posts:4,633 Points:959,590 Joined:Jun 2007	Message Posted: Feb 23, 2012 3:40:51 PM Ignore s6sputnik Report Abuse Bummer!
3912 Veteran Author Virginia Beach Posts:494 Points:103,905 Joined:Aug 2009	Message Posted: Feb 23, 2012 3:36:03 PM Ignore 3912 Report Abuse 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. :)
EricSorenW Rookie Author Florida Posts:80 Points:28,230 Joined:Jan 2012	Message Posted: Feb 23, 2012 3:35:21 PM Ignore EricSorenW Report Abuse I'm seeing our pump prices at a much higher rise!
bell05 Champion Author Atlanta Posts:7,425 Points:1,516,735 Joined:Jun 2005	Message Posted: Feb 23, 2012 3:34:15 PM Ignore bell05 Report Abuse Well Skunk63, looks like you scored another one.
smoketown Champion Author Cincinnati Posts:4,531 Points:1,035,425 Joined:Feb 2008	Message Posted: Feb 23, 2012 3:31:01 PM Ignore smoketown Report Abuse One week it does not mean anything the next it changes back............
singlemom27 Champion Author Ventura Posts:1,355 Points:291,090 Joined:Apr 2011	Message Posted: Feb 23, 2012 3:30:50 PM Ignore singlemom27 Report Abuse it means everything goes up, not just gas prices...food, clothing, shelter, ...
redtruck01 Champion Author North Carolina Posts:1,225 Points:1,031,765 Joined:Mar 2009	Message Posted: Feb 23, 2012 3:30:44 PM Ignore redtruck01 Report Abuse Bend over!
Skunk63 All-Star Author Phoenix Posts:716 Points:199,350 Joined:Oct 2011	Message Posted: Feb 23, 2012 3:30:32 PM Ignore Skunk63 Report Abuse 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.
rpr77 Champion Author Philadelphia Posts:2,045 Points:415,250 Joined:Mar 2011	Message Posted: Feb 23, 2012 3:28:42 PM Ignore rpr77 Report Abuse ok
boatcrazyinme Champion Author Maine Posts:1,693 Points:398,845 Joined:Apr 2010	Message Posted: Feb 23, 2012 3:25:21 PM Ignore boatcrazyinme Report Abuse too much money.
h2ojumper All-Star Author Austin Posts:876 Points:358,025 Joined:Feb 2011	Message Posted: Feb 23, 2012 3:21:19 PM Ignore h2ojumper Report Abuse what doesnt mean higher gas prices? A significant drop in demand? No. A robust supply? No. Exporting our surplus??? NO.
10k Champion Author North Carolina Posts:17,647 Points:1,895,645 Joined:May 2006	Message Posted: Feb 23, 2012 3:20:37 PM Ignore 10k Report Abuse 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..
gasman50 Champion Author Portland Posts:7,046 Points:2,053,375 Joined:Nov 2005	Message Posted: Feb 23, 2012 3:20:15 PM Ignore gasman50 Report Abuse It's going to get very ugly......
Audioquest All-Star Author London Posts:920 Points:85,805 Joined:Oct 2008	Message Posted: Feb 23, 2012 3:19:49 PM Ignore Audioquest Report Abuse 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.
BigBillMI Veteran Author Detroit Posts:431 Points:91,015 Joined:Feb 2012	Message Posted: Feb 23, 2012 3:19:24 PM Ignore BigBillMI Report Abuse i know, lets keep voting for OBAMA And the dems
wild3bill Champion Author New York Posts:2,193 Points:1,504,165 Joined:Nov 2005	Message Posted: Feb 23, 2012 3:14:04 PM Ignore wild3bill Report Abuse 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.
Yankee829 All-Star Author Dallas Posts:534 Points:214,230 Joined:Sep 2010	Message Posted: Feb 23, 2012 3:10:56 PM Ignore Yankee829 Report Abuse Bend over...
big_mac64 Champion Author Tennessee Posts:9,944 Points:1,340,245 Joined:May 2005	Message Posted: Feb 23, 2012 3:10:25 PM Ignore big_mac64 Report Abuse Yeah, but gas went up when oil prices went unchanged for so long...
MG_Sputnik Champion Author Philadelphia Posts:5,612 Points:1,606,020 Joined:Apr 2006	Message Posted: Feb 23, 2012 3:09:04 PM Ignore MG_Sputnik Report Abuse What does it mean? What idiot wrote this article?
4TIGERDOG Sophomore Author Phoenix Posts:238 Points:319,685 Joined:Feb 2011	Message Posted: Feb 23, 2012 3:08:19 PM Ignore 4TIGERDOG Report Abuse HIGHER PRICES?
gils All-Star Author Ohio Posts:504 Points:407,575 Joined:Feb 2011	Message Posted: Feb 23, 2012 3:07:57 PM Ignore gils Report Abuse more money coming out of my pocket.