Oil and gasoline prices are rising
Crude oil nears $100 a barrel for the first time since May. Prices at the pump are up 4.5% since bottoming in December. Want someone to blame? Try hopes for global growth and geopolitical tensions.
The average price of regular unleaded gasoline was at $3.364 a gallon on Tuesday, according to AAA's Daily Fuel Gauge Report. That's up 2.2% this month and 4.5% since hitting a 2012 low of $3.219 on Dec. 20.
The move parallels rising oil prices. Crude oil in the United States is approaching $100 a barrel for the first time since May 2012 and could hit that level any day, says Peter Tuz, president of Chase Investment Counsel in Charlottesville, Va.
Light sweet crude (-CL) in New York settled Tuesday at $97.57 a barrel, up $1.13 from Monday and 6.3% this month alone.
Brent crude, the benchmark North Sea crude, settled up 88 cents to $114.36 a barrel in London. Brent, which is up 2.8% in January, influences U.S. gasoline prices as much as light sweet crude.
The gains for oil and gasoline appear to reflect two forces:
- Optimism that economies globally will do better than expected, particularly the United States.
- Continued worries about protests and terror attacks in North Africa and the Middle East. The civil war in Syria and worries about Iran are playing a role in the oil-price run-up.
If you want some good news about the rising prices, it's just that the gains so far aren't as big as a year ago.
By Jan. 29, 2012, gasoline was up 4.4% to $3.419 while crude oil in New York was flat, but Brent crude was up about 3.8% at $111.46 a barrel.
Another reason for higher prices, suggested Arjun Sreekumar on the Motley Fool, is that production costs for crude oil are rising.
Between 2001 and 2010, the average annual price of Brent increased 228%, while marginal production costs among the world's 50 biggest public oil companies rose 229%, according to calculations by Bernstein Research.
The price of Brent crude is up 462% since the end of 2001. Light sweet crude in New York, however, is down 1.4%. Light sweet crude did hit reach $145.29 a barrel on July 3, 2008 and was a contributing factor to 2008-2009 recession.
But Tuz is a little surprised by the oil-price run-up. U.S. prices should be lower if only because of the big increases in supply coming from shale deposits in North Dakota, Texas and elsewhere.
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Just goes to show that no matter how oil we pump out in North Dakota or anywhere else in the US, it will never lower our price at the pump.
It is GREED!
LOL, imagine if a gallon of milk did this eveyday. Up a few pennies,down a few pennies.
Pretty sure people would be buzzing about it just as much as oil & gasolne. "Well it is predicted that
global economies with heavily cow populated areas
will do better than expected and that is why we are seeing $10 a gallon right now."
- The future.
There is always some excuse to screw over the american people. Maybe it is time we stop giving subsidies to oil companies and see how they feel about it.
"But Tuz is a little surprised by the oil-price run-up. U.S. prices should be lower if only because of the big increases in supply coming and elsewhere."
Since when has supply and demand ever had anything to do with the price of oil?
They go up because they can or want to. It screws too much with the economy as a whole.
Exterminate all the stupid, dangerous and useless species from Earth.
That means that Libertarians are at the top of the list and the first to be exterminated; Next in line are the Teabaggers, then the Neo-Cons and finally all the rest of the Republicans.
That should do it!
God bless a Christian Socialist America!
Every time we buy gas or fuel oil we are inadvertantly paying for the terrorists who are trying to eliminate our way of life and wipe us from the face of the earth
In Asia it is called BLACK MARKETING. Artificial Shortages are caused for the sole purpose of driving up prices. Here it is made Kosher and given the fancy name of FREE MARKET ECONOMY.
THREE CHEERS YOU ROGUES KEEP RAISING PRICES. Wait, even the current demand will die on you. Then you can DRINK CRUDE INSTEAD OF WINE. You Jackasses never learn do you?
its one story after another, an excuse for bsing America. gotta stop
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