Saturday, August 21, 2010

What is the connection (if any) between soaring fuel prices and the high cost of oil?

I'd like to know why the high cost of oil makes the fuel prices soar. As far as I know, there is no manufacturing of oil IN gasoline. If I am wrong, them please explain.What is the connection (if any) between soaring fuel prices and the high cost of oil?
They take crude oil, which is oil in the ground and refine the oil at refinery plants to make gasoline, and certain gasoline takes more refining then others, that's why certain types of gasoline is more expensive then others because its harder to refine then others, but when oil prices goes up, gasoline prices go up too because more oil and gas is being consumed then what is being produced so to slow down the consumption they raise the price so less people will buy gasoline but the price has kept going down because we aren't consuming as much oil as were just a few month's ago but if we start consuming more then the price will go back up, but i hope this helps answer your question, i tried explaining it the best i could, i'm 16 and i learned all this in economics class in school ha haWhat is the connection (if any) between soaring fuel prices and the high cost of oil?
Guess what?





Energy (Oil) companies are not charities.





Crude oil on the market is $113 per barrel for a 42 gallon barrel.





That's roughly $2.75 a gallon right there upon delivery next month.





You probably pay over $3.00 a gallon for whatever portion of the finish product you need (i.e. gasoline) so that refiner can cover their costs (taxes, employees payroll, maintenance and upkeep, et al) and all three levels of gubmint can take there share of taxes as well.





See how that works in a crude form?





Good.
First question. Just where do you think gas comes from? The Easter Gas Bunny???

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