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

Jan 30, 2013 3:49PM

Oil companies and PAID OFF POLITICIANS are starving people to death and all they want to worry about is LAW ABIDING CITIZENS having GUNS.............GO FIGURE!!!!!!!


Could be this isn't by accident...........JUST SAYING!!!!!!!!!

Jan 30, 2013 3:43PM
you might be able to blame the politicians...but believe the real issue is with the speculators....remember one economist saying speculation raises the price of gas like 50 cents a gallon, and greedy oil companies
Jan 30, 2013 3:41PM
Almost everyone that owns a home has access to either natural gas or LPG. I drove a car back in the '90 that could run on either gasoline or natural gas. One flick of a switch on the dash changed between fuels with no noticeable effect even at freeway speeds. Several of my friends operated their vehicles on LPG.

I did lose a couple of cubic feet of storage space in the trunk but that inconvenience was more than off-set by the ability to refill the CNG tank from my residential gas line. (Admittedly, re-fueling this way did take a few hours.) And the vehicles regular gasoline tank was still there for long trips.

Let see, no need for refineries or gas stations, a cleaner burning fuel with a regulated price and huge reserves of the fuel. I can see why someone killed the use of CNG as a motor vehicle fuel.

By the way, I spent a 30 year career working as a fire investigator and/or fire prevention officer. Compressed gas does not present a greater problem than gasoline. The worst fire I ever a gasoline  tanker BLEVE.

Jan 30, 2013 3:41PM
Why dont they put the real reasongas prices rise? " We now have electric and hybrid cars tht dont use much fuel and we are losing money to it so we need to jack prices up to make up the diffrence.  We also dont expect consumers to notice that as little as 7 years ago when hybrid cars wernt very common prices were still under 2$.  We see people as idiots and we need to make up BS stories to keep them quiet and comfortable. They cant do anythng about it.
Jan 30, 2013 3:40PM
There is no reason for the rise -- what the heck is the purpose of this article??
Jan 30, 2013 3:30PM
When Oil became a commodity and trading started on the NYSE, prices started to rise. This goes back to the early 80's. Since then, GREED has taken over and the consumer is holding the short end of the stick. The only way to stop this nonsense is to unite and stop buying from one of the giants. Pick one, EXXON, MOBILE, SHELL...tell your relatives, friends anyone who'll listen to NOT buy from one particular company for a few weeks. I wonder what will happen to the excess inventory. 
Jan 30, 2013 3:30PM
Let's just keep giving all the oil companies millions in subsidies! We all know how much they need it with billions in record profits!
Jan 30, 2013 3:23PM
Jan 30, 2013 3:18PM
sirrubes1948: Funny how many right wing Obama haters are socialists. When those on the left complain about the special tax breaks and subsudies for oil companies you cry about capitalism and free markets but when the prices get high on something you need you suddenly become socialists. The oil belongs to the mineral rights holders and the oil companies.You have no right to force them to sell at restricted prices. Why bitch because Obama's tax increase hurts the job creators then demand the job creators sell their product at a lower price. I guarantee you oil companies would rather pay a few percent more taxes than to be forced to sell at a loss or less than what they could sell to other countries. It is their oil after all not, "ours" as most budding socialists like you call it.
Jan 30, 2013 3:17PM
It's time we stopped the greed machine! We know how to produce energy without using oil. Get moving America and demand we use eco friendly enery sources!
Jan 30, 2013 3:10PM
It's called capitalism. You can complain about oil company tax breaks, ethics or whatever but you can't be a proponent of a free capitalist society only when the products are cheap or not necessities.
Jan 30, 2013 3:10PM
This is EXACTLY what our MORON of a PRESIDENT wants to happen
Gas to be around $5 a gallon if not more
He is an IDIOT and should never have been reelected but the MORONS that have their hands out voted him in
UNTIL he is out of office we are DOOMED

Jan 30, 2013 3:06PM
When i saw Iran put a monkey in space!!!! The first thing i said was ahhhh! Ahmadinijad went into orbit! LOOL! Hahahah!
Jan 30, 2013 3:05PM
BP's 4B may have something to do with it.
Jan 30, 2013 3:03PM
Try asking SPECULATORS !!!  There ls PLENTY of oil in this world.  Our OPEC PALS just REDUCED oil production by 1.3 million barrels per day.  Nice guys.  We just saved their butts and now they do this to us.  Drill in the US you stupid politicians !!!
Jan 30, 2013 3:03PM
I think the middle east should be wiped out Israel included.  I am tired of Israel screwing with Syria and Palestine's having problems with this one and Iran having problems with this country.....enough wipe them all out as far as I am concerned.  If these sand dwellers can't act like normal 1st world countries and get along wipe em out and stabilize my oil prices. 
Jan 30, 2013 3:02PM
That's right,no better way to "FIX" a crap economy than to take more out of peoples pay check and then jack up the price of the one thing we have to have.Good job,you sorry sacks ! !
Jan 30, 2013 3:01PM
If the US produces more, the Saudis and others will just produce less to keep prices wherever  they want it.
Jan 30, 2013 3:00PM
Of course this comes this comes after the news of 267 B barrels found in Autraila.  Greedy Wall Street trying to make a profit bonus off the struggling tax payer still trying to survive.  Once a scrooge always a republican, shipping jobs over seas or lowering the workers to minimum wage for profits still.  What is this history repeating itself because the 1920s is where we didn't learn that lowering taxes & regulations on the rich put us into the depression before WWII and wrecked America.
Jan 30, 2013 2:55PM

dopes.... waal  street  does  not  control  the  price  of  oil.....  oil   is   a  WORLDWIDE   commodity.

oil  company  executives  also  do  not  control  the  price  of  oil..... now  if  you   want  to   say  that  opec   is   controlling  the  price  of  oil  than   you  may  be on  to  something...

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