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.

By Charley Blaine Jan 30, 2013 9:46AM
If you've gone to the gas pump lately and thought prices were higher, you're right.

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 fBuying gas © moodboard/Corbisorces:
  • 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.


More on moneyNOW

219Comments
Jan 30, 2013 11:54PM
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If you speculators would stop speculating on oil prices and trying to get rich, this mess would not be happening!
Jan 30, 2013 11:22PM
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Gas goes up because Americans pay the price. They pay the price because they still have money.
Jan 30, 2013 10:06PM
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They DONT want to build the Keystone pipeline because they will not have the same excuses to raise prices when we have a major supply of cheap Canadian oil !!!!!!!!!!!!!!!!!
Jan 30, 2013 9:10PM
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The oil market is manipulated by speculators way too much; not only are the oil companies recording record profits, the speculators(middle men) are making record returns at the cost to the American public. The oil business may be competitive amongst each other but a monopoly as a whole. Alternative fuels don't have the backing, electric cars are too expensive; so what's the answer; government run/subsidized oil business? That's communism; government intervention into the commodity market? No more free market; too much government. The middle man needs to be removed from the equation, period.
Jan 30, 2013 9:06PM
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Oi the only energy or utility we usethat the pricing is not controlled by some branch of goverment. Yes they can not just put the price of a gallon of water up without Ok's. Look back about 5 years ago when the markets fell, oil about $100 a barrel gas $3.00 a gallon.  The campaign funders can always indan excuse for price increases, the market price of a barrel, trouble overseas, OPEC, disasters or high demands; just some bull. Can anyone else do this?  Oh the govermen can and they can also set how much they owe, try that with your bank or creditcard co.
Jan 30, 2013 8:57PM
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I just read where some of this price increase comes with the devaluation of the dollar. The Federal Reserve is printing money at increased rates,and driving the American dollar to new lows,dereasing it's buying power. Don't worry though,MSNBC will never really tell it to you as it really is,as they are part of the lies you hear from your friendly government propoganda machine. Kind of like hearing about gun control issues the first part of every broadcast,and economic issues last.It's the real reason MSN sucks the bag!
Jan 30, 2013 8:40PM
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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!

Jan 30, 2013 8:39PM
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Wait a minute. Didn't we invade Iraq? Where's our free oil?

Jan 30, 2013 8:35PM
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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.

Jan 30, 2013 8:01PM
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Didn't Australia find a ton of oil in their back yard.?
Jan 30, 2013 7:58PM
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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.

Jan 30, 2013 7:54PM
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"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?

Jan 30, 2013 7:47PM
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Holy Crap!! "recovering economy"??  It's called Federal Reserve monetizing fiat directly to banks which in turn they use to ramp commodities and equities in massive leverage therough dark pools and HFT.  F#%* YOU MSN and CNBC for your deceptive shill "journalism".
Jan 30, 2013 7:45PM
Jan 30, 2013 7:43PM
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Forget about more gun control. THese scumbags need "oil price control".

They go up because they can or want to. It screws too much with the economy as a whole.

Jan 30, 2013 7:26PM
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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!

Jan 30, 2013 7:25PM
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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

 

 

 

 

Jan 30, 2013 7:24PM
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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? 

Jan 30, 2013 7:17PM
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The price of oil and gas goes up because they, the oil companies do whatever they want. So there!  Don't give me all that percentage crap and light sweet oil, then production costs. Thats just crap production this week on Tuesday and then it goes up 17 cents on Wednesday..................BS   
Jan 30, 2013 7:16PM
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its one story after another, an excuse for bsing America. gotta stop

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