Driving gasoline is 50% higher today than in 2008 – relative to the price of oil.
In other words, gas prices are nearly what they were in 2008... but at that point oil was priced at $147 a barrel.
Today the oil price is $50 less than that.
That's why driving gasoline is 50% higher.
And drivers in North America are now competing for cheap American crude – with gasoline drivers everywhere.
I explained that this week on FOX National Business News. A lot of what I talked about can be summed up in these two charts below – which also help explain a much broader story.
In the first chart you'll notice there is a low amount of middle distillates globally—these are the refined oil products that are used to power and transport the world: diesel, jet fuel, home heating oil, etc.
This means demand is low, or supply is low – one or the other.
Read more: http://oilprice.com/Energy/Gas-Prices/Why-North-American-Gas-Prices-Are-So-High.html
In other words, gas prices are nearly what they were in 2008... but at that point oil was priced at $147 a barrel.
Today the oil price is $50 less than that.
That's why driving gasoline is 50% higher.
And drivers in North America are now competing for cheap American crude – with gasoline drivers everywhere.
I explained that this week on FOX National Business News. A lot of what I talked about can be summed up in these two charts below – which also help explain a much broader story.
In the first chart you'll notice there is a low amount of middle distillates globally—these are the refined oil products that are used to power and transport the world: diesel, jet fuel, home heating oil, etc.
This means demand is low, or supply is low – one or the other.
Read more: http://oilprice.com/Energy/Gas-Prices/Why-North-American-Gas-Prices-Are-So-High.html
No comments:
Post a Comment