Where Is the Highest Demand for Oil?
English Public
Large price swings at the pump are a result of fluctuating oil prices. Over the past ten years, the price of each gallon of gasoline has been largely influenced by the price of crude oil. Gas prices fluctuate daily, mirroring daily changes in oil prices.
Where Is the Highest Demand fo
For more info...
https://oclnn.com/market/how-gas-prices-are-affected-by-crude-oil-prices/
The remaining portion of the price of gasoline is made up of corporate profits, state and federal taxes, as well as refinery and distribution costs. In February 2022, 61 percent of the price at the pump was attributed to crude oil prices. Refining accounted for another 14% of the total cost of a gallon of regular gasoline, with the remainder going to distribution, marketing, and taxes. The minimum price of a gallon of regular gasoline across the country for the week beginning April 11 was $4.09, down 8 cents from the week before and up to $1.24 from the same period last year.
Inflation is still rising, and Russia's invasion of Ukraine is still going strong, so gas prices have risen to record levels. Russian oil exports consistently place among the top three in the world. President Joe Biden declared the United States would prohibit the import of Russian oil in March 2022, which increased gas prices. The Department of Energy's announcement that oil would be released from the Strategic Petroleum Reserve at the beginning of April, however, caused prices to gradually decline.
Since the financial crisis of 2008, oil and gas prices have been particularly volatile. Their relationship, including significant peaks and valleys over time, is depicted in the following graph.
Because crude oil is the primary component of gasoline, changes in the price of crude oil also have an impact on the price of gasoline. In the United States, West Texas Intermediate crude oil is used as a benchmark for oil pricing. Since the financial crisis of 2008, crude oil prices have fluctuated sharply based on this benchmark. 2022: According to AAA, the national average gas price hit a record high of $4.30 per gallon in March. Due to Russia's invasion of Ukraine, gas prices rose dramatically from the March 2021 average by $1.31. 2021: The average price of regular gas was $2.39 per gallon in late January, rising to $3.39 per gallon in early November. 2020: In April, a global pandemic and a price war on oil contributed to driving the price of oil below zero, to almost -$37 per barrel (/b). However, a technical imbalance in the futures market was to blame for this unusual occurrence. Massive selling of contracts about expiring was fueled by speculative investors who were long oil but had no intention of taking delivery. Oil prices then began to rise, but until June, when they recovered to $40/b, the cost of regular gas remained below $2 per gallon. When oil prices recovered to $40/b, gas prices increased, bringing regular gas to $2.17 per gallon.
2015: By the end of the year, prices were below $37/b, which caused regular gas prices to drop below $2/gallon at the beginning of 2016. For the majority of the following five years, the price of regular gas stayed between $2 and $3 per gallon.
2011: In April, the price of oil climbed to about $113 per barrel. Prices for regular gas rose to $3.96 per gallon the following month. For the majority of the following three years, oil prices remained above $90 per barrel, only occasionally falling below that level after Iran threatened to close the Strait of Hormuz, a crucial oil transport route. The regular gas cost remained consistently higher than $3 per gallon until late 2014.
2008: In July, the price of oil soared to about $145/b. That sent regular gas prices to $4.11/gallon. Early in December, regular gasoline prices had fallen to $1.81 per gallon, and oil prices had fallen to about $49 per barrel.
Oil prices are impacted by supply and demand, just like most products you purchase. Prices rise when there is greater demand, such as during the summer driving season. Since only a few northern states use heating oil in the winter, there is less demand. The commodities exchange's oil futures contracts have an impact on oil prices as well. These prices change daily depending on what investors believe the future price of oil will be. Commodity traders significantly influence oil prices.
Where Is the Highest Demand fo
For more info...
https://oclnn.com/market/how-gas-prices-are-affected-by-crude-oil-prices/
The remaining portion of the price of gasoline is made up of corporate profits, state and federal taxes, as well as refinery and distribution costs. In February 2022, 61 percent of the price at the pump was attributed to crude oil prices. Refining accounted for another 14% of the total cost of a gallon of regular gasoline, with the remainder going to distribution, marketing, and taxes. The minimum price of a gallon of regular gasoline across the country for the week beginning April 11 was $4.09, down 8 cents from the week before and up to $1.24 from the same period last year.
Inflation is still rising, and Russia's invasion of Ukraine is still going strong, so gas prices have risen to record levels. Russian oil exports consistently place among the top three in the world. President Joe Biden declared the United States would prohibit the import of Russian oil in March 2022, which increased gas prices. The Department of Energy's announcement that oil would be released from the Strategic Petroleum Reserve at the beginning of April, however, caused prices to gradually decline.
Since the financial crisis of 2008, oil and gas prices have been particularly volatile. Their relationship, including significant peaks and valleys over time, is depicted in the following graph.
Because crude oil is the primary component of gasoline, changes in the price of crude oil also have an impact on the price of gasoline. In the United States, West Texas Intermediate crude oil is used as a benchmark for oil pricing. Since the financial crisis of 2008, crude oil prices have fluctuated sharply based on this benchmark. 2022: According to AAA, the national average gas price hit a record high of $4.30 per gallon in March. Due to Russia's invasion of Ukraine, gas prices rose dramatically from the March 2021 average by $1.31. 2021: The average price of regular gas was $2.39 per gallon in late January, rising to $3.39 per gallon in early November. 2020: In April, a global pandemic and a price war on oil contributed to driving the price of oil below zero, to almost -$37 per barrel (/b). However, a technical imbalance in the futures market was to blame for this unusual occurrence. Massive selling of contracts about expiring was fueled by speculative investors who were long oil but had no intention of taking delivery. Oil prices then began to rise, but until June, when they recovered to $40/b, the cost of regular gas remained below $2 per gallon. When oil prices recovered to $40/b, gas prices increased, bringing regular gas to $2.17 per gallon.
2015: By the end of the year, prices were below $37/b, which caused regular gas prices to drop below $2/gallon at the beginning of 2016. For the majority of the following five years, the price of regular gas stayed between $2 and $3 per gallon.
2011: In April, the price of oil climbed to about $113 per barrel. Prices for regular gas rose to $3.96 per gallon the following month. For the majority of the following three years, oil prices remained above $90 per barrel, only occasionally falling below that level after Iran threatened to close the Strait of Hormuz, a crucial oil transport route. The regular gas cost remained consistently higher than $3 per gallon until late 2014.
2008: In July, the price of oil soared to about $145/b. That sent regular gas prices to $4.11/gallon. Early in December, regular gasoline prices had fallen to $1.81 per gallon, and oil prices had fallen to about $49 per barrel.
Oil prices are impacted by supply and demand, just like most products you purchase. Prices rise when there is greater demand, such as during the summer driving season. Since only a few northern states use heating oil in the winter, there is less demand. The commodities exchange's oil futures contracts have an impact on oil prices as well. These prices change daily depending on what investors believe the future price of oil will be. Commodity traders significantly influence oil prices.
by gerryshown
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