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 12:11PM
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Manipulation and price fixing, normal industry practice. No shortages, just GREED. Stop exporting Alaska North Slope oil, keep domestic production in the United States.  Is that simple enough?
Jan 30, 2013 12:10PM
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So, in other words, Oil Executives got tired of us paying so "little" for gasoline and decided to come up with BS excuses for an increase.  Well played....
Jan 30, 2013 11:48AM
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LOL....  Oil is up because Helicopter Ben is printing 85 billion/month.    In many foreign currencies they price of oil is down.

STOP devaluing the dollar and oil (read gasoline) will go down.


Jan 30, 2013 12:27PM
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There is nothing good about high gas prices, it's a drain on the rest of the economy.  I hate to say it but oil should be price fixed, not left up to the wall street geniuses.  See how they're trying to talk up the price to over $100 - it shouldn't be left to the wim of some wall street trader trying to earn a larger bonus.
Jan 30, 2013 12:23PM
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The reason gas prices are up is because there are people in this country who are able to manipulate crude oil prices to their own benefit.  They get richer and the rest of us pay in order to make them so.
Jan 30, 2013 12:47PM
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You forgot to mention the Speculation and Manipulation that is taking place on Wall Street to drive prices up. This is a major reason for the price upswing, but Wall Street answers to nobody so they can drive prices as high as they wish no matter what the consequences are to our economy and it's people. This could be stopped by making traders take full physical delivery of all futures bought ahead or by placing a tax on each and every oil trade. Currently, these traders never see or have to deal with all of the futures that they are buying. Do away with paper futures contracts as they will snuff out our recovery.
Jan 30, 2013 11:40AM
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and next week msn will try and convince us that gas prices are falling

 

Jan 30, 2013 12:20PM
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"The price of Brent crude is up 462% since the end of 2001."

 

I'm sure everyone's salaries have gone up the same amount since then, so what's the problem?

Jan 30, 2013 12:43PM
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Because oil prices going up strangle our economy there has to be regulation as to why? Oil runs this economy. If I have to pay more for fuel, to get to work, that's less disposable income I have for spending so our economy will be stimulated. Why oil prices aren't regulated is just nuts. Utilities are regulated and in my mind this is nothing more than a utility. Until we come up alternative trans. options this commodity needs regulation. When it goes up in price it's an attack on our economy. What happens when our economy is attacked? It's an act  of war, in my mind. We need to stop this commodity from ruling our lives.
Jan 30, 2013 11:57AM
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I thought the real reason for the price increase was because Iran finally put a monkey in space......what a load  of chit... 
Jan 30, 2013 1:00PM
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The production cost is still not more than $15 or $18 at the most. Saudi Arabia, and Venezuela have a fixed price for the country (less that $0.5 per gallon) and market price for rest of the world. Why can't we do here also like that? Oil companies make profit to the tune of $20 to $40 billion per quarter, but despite of that our government does not have a clue how to reduce the gas cost here. Gas price has affected, groceries, house prices, industries and the entire economy, and despite of that the government does not want to intervene.
Jan 30, 2013 11:41AM
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Welp....looks like we're going to have to take these folks out the back alley again and kick them in the hiney again - I'll have to do everything I can to not use their product. Hey, I'll help anybody to make a living..I'll help nobody to make a killin'
Jan 30, 2013 12:27PM
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OBAMA'S EPA REGULATIONS, SHUTTING DOWN CHEAP OIL GAS AND COAL PRODUCTION

AND PUSHING HIS LEFT WING FAILED GREEN AGENDA ON AMERICA! HE PROMISED TO

SKYROCKET ENERGY PRICES AND HE'S DOING IT ALONG WITH FOOD ETC..AND THEN HAS

THE NERVE TO RAISE MIDDLE CLASS TAXES! PUT THE BLAME WHERE IT BELONGS! GAS

NEVER REACHED THIS WHEN BUSH WAS IN OFFICE YOU LEFT WING JACKASSES! OBAMA

AND HIS DEMOCRATS ARE DOING NOTHING TO HELP SMALL BUSINESS AND CAPITALISM!

THEY ARE ANTI CAPITALISM THEY ARE BIG GOVT BUSINESS!

Jan 30, 2013 12:31PM
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Yes, these "volatile" oil prices that we remove from the CPI calculation are up 462% from 2001.   Should we have an inflation index that includes these items over the longer term?   In other words, if we include the "volatile" food and gas prices over a 10 year period, what is the *real* inflation rate?
Jan 30, 2013 12:40PM
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Time to BOYCOTT people.. stay home, don;t go unless you have too.I am doing my part...
Jan 30, 2013 12:25PM
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Okay, so I don't thoroughly understand the intricacies and tech-talk here, but what I do understand is that all the babble adds up to nothing more than the big oil folks and the traders wanting to make more money, so the price goes up.  I know my version (though "spot-on") is kind of boring, so the news media adds the the babble so they will have something to fill the airwaves with.

Jan 30, 2013 1:16PM
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OBAMA'S EPA NAZIS ARE SHUTTING DOWN A ENERGY PLANT IN TEXAS AND CUTTING 3,900

JOBS! WHERE'S THAT IN THE LEFT WING BIAS MEDIA? IF THIS WAS BUSH IT WOULD BE

FRONT PAGE NEWS! OBAMA IS NOT FOR JOBS UNLESS IT'S BIG UNION GOVT GREEN JOBS!

YOU WONDER WHY GAS AND ENERGY AND FOOD PRICES ARE OUT OF CONTROL?

Jan 30, 2013 1:19PM
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There is no truth to anything we read. We're fed lies and propaganda. The petroleum industry will push the price up until we can no longer buy it. They will then wait for us all to quit our jobs(the ones lucky enough to have jobs) and get on welfare lines for food stamps and federal assistance. Then the mission will be complete. A society totally reliant on big government to take care of us. I'm not on the right or left or even in the middle. I am for what is right and just for all people and a political system that you need billions of dollars to campaign your way into office does not seem to be a system predicated towards being 'by the people' or 'for the people'. Now I'm not truly certain how much of the onus falls on the government in a free market system where gas and oil prices are concerned, however, when you look at the top 1% of the total population you will find many, some who hold public office, that derive a good portion of their wealth from oil and gas. There can be no change without the power and resources to do so. This isn't a new ideology. It's always been this way. History is doomed to repeat itself again and again. All one need do is look at the history of mankind. Corruption, greed, and revolution, again, and again, and again. It's not rocket science.
Jan 30, 2013 12:43PM
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THE PRICE OF GAS WILL COME DOWN AGAIN NEXT PRESIDENTIAL ELECTION WHAT ARE YOU GUYS NEW?
Jan 30, 2013 12:43PM
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"Capitalism is the legitimate racket of the ruling class."
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