The Soapbox
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Subject: There's not a direct correlation between the price at the pump and the price of
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Posted by: KaHOOnah on Thu Feb 23 2012 10:34:39 AM
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Message:
oil. A good rule of thumb is that for every dollar increase for a barrel of
oil, US consumers will probably spend, 2.5 cents more at the pump. But,
again, it's not a hard and fast rule. It assumes steady refining capability,
static demand for other things that are produced using crude (plastics,
etc) among other things. I think most folks are under the impression that
the US is currently operating fewer oil refineries, which is contributing to
the higher price of gas.
Interesting aside: there's a pretty strange price differential between the
West Texas Intermediate (WTI) and the Brent Crude from the North Sea
light sweet...about $30/barrel. That just screams that the media to
transport oil from field to refinery is woefully inefficient here in the
States. Hopefully the Obama admin will stop playing politics with the
Keystone XL pipeline (it's really small potatoes, in the grand scheme of
things) because we'd be able to run an extension to field in North Dakota
to get some folks rich and create jobs (temporary and permanent). All by
stroking a pen with no real costs to Uncle Sam.
But we's playin' Big Boy politics!
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There's not a direct correlation between the price at the pump and the price of -- KaHOOnah Thu Feb 23 2012 10:34:39 AM |
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Gasoline prices aren't rising, the value of the dollar is falling... -- PK German Thu Feb 23 2012 8:13:32 AM