Crude Oil Price Per Barrel
Crude Oil Price Per Barrel
10 years ago most people never had to think about crude oil price per barrel, but today a lot more people are taking interest. For the first time in many years the average consumer is starting to realize how important the crude oil price per barrel really is in terms of what they pay for fuel. In 2008 oil prices were at an all time high and this got the attention of a lot of people. Most people would have never known this if oil was not used to produce gasoline that fuels vehicles. Since 2008 more consumers have showed interest in crude oil price per barrel, as well they should since it has a huge impact on their lives.
Crude oil price per barrel affects all of our fuel costs, especially those related to gasoline. Many people don’t understand how oil can fluctuate if it is a naturally occurring substance. The fact of the matter is that what causes a change in the price is supply and demand. Right now there is more of a demand for oil than there is a supply for it. In short, the drilling companies cannot drill the oil fast enough to fulfill the need of consumers around the world.
It’s important to understand that crude oil price per barrel is only the beginning of the cost that is handed down to the consumer. By the time the oil makes its way to the consumer they are taking on the cost of the production of the oil. This is a process that is more involved than most consumers know. For instance it starts with a production company has to extract the oil from the ground. This costs money but this is not where the cost of oil stops. Once the oil is extracted from the earth it has to be delivered to a major shipping location which also costs money. From here, the oil is shipped to a refinery, which again, costs money.
Lastly, the oil is turned into different types of fuel such as gasoline, heating oil, jet fuel, and more. But it doesn’t stop here; instead the refiner ships the products to the wholesales suppliers who then spend more money shipping the oil that has been turned into gasoline to retailers such as gas stations. Every one of these locations and practices is a business and everyone wants to make money, so the cost is handed down time and time again until the consumer has to pay more than they would like to pay, and this is all based on crude oil price per barrel.
It’s simply a good idea for consumers to be aware of the crude oil cost per barrel. There is a lot of guessing as to what the future will hold in terms of pricing, but when you watch the changes over time you’ll find that there are trends that you can begin to see. These trends will help you plan accordingly for your fuel expenses.