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 5:43PM
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# 1 EXPORT of USA is gasoline, diesel and aircraft fuel. Keystone pipeline company reported to tell stock holders that all the oil would be sent to Europe and South America., none to USA. Why is a strategic resource not regulated by goverment?

 

Jan 30, 2013 5:33PM
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and we still are in a recession, i think we just got use to idiots in washington, time for hope and change, impeach him. insurance went up 3 times for my ki d, he couldn't afford it anymore, his wife twice, obamacare will break this country or he will tax us to death.

 

Jan 30, 2013 5:31PM
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Netanyahu + Bomb + Red Line + World Speculators = Higher Prices

Mystery Solved

Jan 30, 2013 5:17PM
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It is nothing but price fixing.  Have you noticed how in the last 4 years that Diesel has gone way beyond normal pricing?  Looking back at petroleum pricing, diesel was for more than a decade about $1.00 per gallon until the end of 2004, when it broke the $2.00 mark.  Since that time it has gone as high as $4.75 on average back in the summer of 2008, then back down to $2.00 in spring of 2009.  Since 2009 it has made a steady climb to the point that it has out priced regular gasoline by almost $.70 a gallon. It stands right now at almost $4.00 a gallon.  I understand that diesel in now processed more than it used to be with the removal of more sulphur to decrease emissions.  Other than that it is one of the easiest fossil fuels to produce.  Much easier than unleaded gasoline.  Since this is the case why are we paying $.70 more than unleaded for diesel instead of $.70 less than unleaded?  Because the markets know that we consume more diesel than any other fuel and if they raise the price on this commodity it will affect all of the economy.  We use diesel to move almost every product you buy from the brocolli being harvested in the field to the transporting of it to the store.  The big screen coming across the Pacific on a ship, to the truck that delivers it to the Best Buy.  This price fixing is the menace to all of our financial wows as the little guy.  The sad story is when we finally get a congressional leader to investigate the fraud of this price fixing.  Some petroleum producer comes along and puts some money in his/her pocket and they just stop their investigation.  Ever wonder why more that 50 % of our congressional leaders are Millionaires now, when they weren't in that financial status before they were elected?  They are all in bed with each other and we have no defense.  What will happen when the middle class is gone and the elite only have the rich to tax?  Sounds like it is a game of take what you can now and enjoy it for it will all be gone soon.
Jan 30, 2013 5:13PM
Jan 30, 2013 4:56PM
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Anyone who is educated and is paying attention knows that American domestic oil producers are only interested in profits.  They want to build the Keystone pipeline so that they can more easily EXPORT North American oil in it's most profitable form for them on the world market, refined gasoline.  They don't give two hot sacks of cat snot about anything other than creating profits.  They don't care about the American consumer, they profit more from higher domestic gasoline prices, so why would they do anything to make them go down???  Anyone who doesn't understand and use this basic foundational argument in regards to oil and gasoline is watching too much TV news.  Pull your head out and think for yourself.
Jan 30, 2013 4:53PM
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The up & down price of gas/oil is a direct correlation to a government out of control, every tom dick & harry corporation is taking advantage of the situation and looking out for them selves, example: when a company is going down hill, going broke or going into  bankruptcy, the employees, management lose interest and some start to break stuff, some start to rob stuff, & no body is watching out for the company an all kinds of **** happens, nobody cares cause they're going to lose their job any way so katy bar the door. Obama's a crook, the senate & congress are just a bunch of free loaders, everything is out of control because almost all of them just don't care.
Jan 30, 2013 4:50PM
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@ Ok, I've seen some idiotic comments on here but you are really something. FIrst of all, EPA regs have NOTHING to do with the rise in prices. The big oil companies get HUGE subsidies from the fed to offset that crap. Next, President Obama hasn't shut down ANYTHING! Domestic oil production is at it's HIGHEST level in YEARS. Much higher that it EVER was under Bush. Next, gas prices DID in fact rise to an even higher level under President Bush thank you very much, in fact, he was tied for the HIGHEST gas prices ever in the U.S. with Jimmy Carter, (that would be inflation adjusted price of course). Next, Ummm.....taxes WEREN'T raised on the middle class you idiot! Taxes were raised on people making $450,000 a year and guess what? That is nowhere near middle class. Median income in the U.S. is $50,000 We will put the blame where it belongs. It belings with a financial industry in this country that is allowed to gamble with no regulation at all, a bunch of speculators who WANT the highest possible price for oil so they can get rich and finally, with George W. Bush who promised on of the "benefits" of the Iraq war was to keep oil cheap but in fact oil prices more than DOUBLED during his presidency. You very clearly are a moron who has no clue what the hell he is talking about so how about you go to one of your right wing-nut pages where they don't give a crap about facts?
Jan 30, 2013 4:49PM
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ok, this is getting fun.  Time to either prove that MSN has someone out there censoring comments, or they have some pretty strong programs filtering out words... either way... censorship.... Now, every third letter to ge my derogatory term on here.... Tbosiwileinlcyhosepealkdrws.  Have fun, I know I am.
Jan 30, 2013 4:44PM
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Wow,,,,,, did anyone ever notice that the word **** has been blocked by MSN and NBC.  Suppose Obama put that on his list of directives to the media of what they can and cannot show. 

 

Oil is speculative.... used to be a good controlled speculative market when traders were regulated.  Democrats made oil speculation open to everyone who wanted in, and prices started making crazy up and down swings since. 

 

Keystone pipeline truth.... the planning for this has been in for decades, not just since Obama.  All the land was bought, leased, or optioned long ago by knowlegeable investors.  Seemed easy, lots of jobs, oil from Canada instead of the middle east.... Time to vote.  But wait, all the lacky Obama Dem congresspeople and their supporters wanted in on the deal.... money threw 10 handed deals... all that stuff.  Not the people who poured years into planning and investment in the opportunity.  And that is why Obama has shut down Keystone.  Its not the environment, or any other reason.  They just have to put a few twists and turns in its path to run over the right properties, and shovel the correct Federal funding to the right politicians..... thats the truth of why Obama wont ok Keystone.

Jan 30, 2013 4:31PM
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too funny.  Want someone to blame.... just don't blame Obama and the gang who couldn't shoot... wait no....

Reactive foriegn policy.  No economic anything going on for four years.  Worried about gay people, guns, busting the constitution, spending more, and sticking us with a growing socialist agenda.  Nope, blame a bunch of ****s running around the desert with their guns.  Just don't blame Obama.

 

For four years this President has done nothing but campaign, cover up, deflect, and play with social issues pushing his own defunct vision of what the world should be.  No economic focus, no foriegn policy strategy, no assisting with compromise in Congress, no budget.... no anything of real importance.  And people still wonder and keep looking for something else to blame? 

Jan 30, 2013 4:15PM
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Any and every excuse possible is used so wall street can become richER!! Dont try to talk to the people like we're idiots and dont know the TRUTH!!!!!!!
Jan 30, 2013 4:12PM
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BLAME THE H N I C HE HAS HIS GREEN AGENDA AND THE ONLY WAY TO MAKE IT WORK IS **** WITH OIL AND GAS PRICES AND ALL OF YOU THAT REALLY THINK HE HAS NO CONTROL OVER THOSE PRICES ARE IDIOTS!!!!!!!!!!!!!!!
Jan 30, 2013 4:09PM
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When will the US declare independence from foreign oil and drill in the midwest?????

Enough of environmentalists and enough of foreign aid!

It's time for our troops to leave the Arab countries and let them solve their own problems.

Let the UN worry about the world, let the US heal it's own problems.

Jan 30, 2013 4:04PM
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Oil companies and politicians are sitting around right now laughing and saying "IT SURE SUCKS TO BE THEM!!!!!!!!!

 

Hey obama, where are the EXECUTIVE ORDERS against the oil companies and SPECULATORS that are taking food out of the AMERICAN PEOPLES MOUTHS.

 

JUST AS I THOUGHT!!!!!!

Jan 30, 2013 4:03PM
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And they call his name "Obama", "Obama", and they call his name "Obama"!
Jan 30, 2013 4:02PM
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at least this is1 story everyone on here agrees. oil should be at $70 there is plenty to go around

Jan 30, 2013 3:58PM
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I really think it is very sad that the news and oil companies think the general public is stupid.  The oil companies greed started the housing problem in this nation which then tanked the entire economy..why do I say that.  People bought houses that they could afford when they were paying $2/gal for gas but it blew their entire budget when it doubled to $4.  Do the exec's at the oil companies care..nope..they care only about their salary packages period. The rest of the world can go fly a kite as far as they are concerned.
Jan 30, 2013 3:53PM
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I am so sick of this BS.  The US citizen, yes the legal TAXED TO DEATH citizen is being used again to line the pockets of big oil.  Those of us lucky enough to drive to work, pay taxes, pay insurance and pay for tolls that were supposed to be paid for before I was even given the privilege to pay for driving lessons to pay for a license are still paying.  I know we need to keep these countries happy so we can use them if we need to in a war, but PLEASE, this is enough.  Dip into those reserves we have so much of before their containers collapse and we never get to use them and have to yet pay more to pick up the spill costs.  This country needs another revolution to get the fat cats out of office on all sides.  I'm jus sick of all this BS every day, no end in site!
Jan 30, 2013 3:51PM
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Hmmm anyone remember the last time Exxon DIDN'T have a record breaking quarterly profit?
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