How Does Crude Oil Affect Gasoline Prices?
Gas And Oil Are Like “Peanut Butter And Jelly”
Many of you may notice gasoline prices are always increasing and decreasing. One of the main causes for the gasoline fluctuations is crude oil.
Back in 2008 the average barrel of crude oil was over $147.27 Gasoline was around $4 per gallon, and in many states, in the U.S. it was about $5 per gallon. Why were gas prices so high?
Crude oil makes up about 71% of gasoline’s price because it’s one of its main components. When the price of crude oil goes down expect the price of gasoline to drop. When they go up expect a price increase. Right now oil prices are under $50 per barrel which explains why gas is around $2 per gallon and lower in many regions in the United States.
