But while U.S. oil production continues to rise, and gasoline consumption continues to fall, gas prices have remained stubbornly high: The...
historical oil prices
Oil Prices Promise to Head Higher As Mexican Production Dwindles
In addition to Iranian threats and growing demand, dwindling production of crude in Mexico promises to push oil prices higher as well.
Mexico is the third biggest exporter of oil to the United States. That's bad news for the U.S. economy which always gets hit when oil prices rise.
From 2004 to 2008, the U.S. Department of Energy reports such jolts, along with OPEC price manipulation, cost roughly $1.9 trillion. Plus, a recession followed...
Oil Prices are Higher, But It Won't Be Much Help for Alternative Energy
Normally, when gas and oil prices accelerate on both sides of the Atlantic, alternative energy sources come into focus and become a big part of that "energy independence" discussion.
Well, not this time.
During the run up to mid-$4 gas and $147 a barrel oil in 2008, many assumed these costs would continue to advance. That made alternative sources - especially...
Why a Strategic Petroleum Reserve Release Won't Help Oil Prices or President Obama
With oil prices showing no signs of retreat during the final months of the U.S. presidential campaign, beltway insiders are turning to one misguided solution to combat rising oil prices.
Releasing oil from the Strategic Petroleum Reserve (SPR).
Trial balloons floated all over Washington during the past few days. The only reason politicians didn't move on this sooner (say a few months ago) was the price level.
Will Oil Prices be the Next Manipulation Scandal?
Now that the Libor manipulation scandal has been revealed, it looks like oil prices could be the focus of the next search for misreporting.
According to the International Organization of Securities Commissions (IOSCO), the current system of oil price reporting is "susceptible to manipulation or distortion."
Where Are Oil Prices Headed?
The uncertainty looming around worldwide economies sent oil prices sinking below $90 a barrel yesterday (Wednesday), a level not seen since October of last year.
Benchmark crude slid $1.95 Wednesday to finish the day at $89.90 per barrel.
The decline came on the heels of several weeks of slipping oil, sparked by a plethora of less than stellar economic reports. The concerning data mostly involved Europe's ongoing sovereign debt saga.
Oil gained 0.5% in early afternoon New York trading...
Oil Prices and the Death of Greece
As the Eurozone continues to show weakness, events last weekend in Athens may accelerate the situation. The downward movement in oil prices this week in both London and on the NYMEX testified to the rising concern.
The aftermath of the Greek elections propelled the new radical left party SYRIZA into the limelight as the second strongest party in the country. Given the adamant refusal by SYRIZA leadership to accept bailout reforms, the party's...
Stable Oil Prices are the Key to Chinese Growth
Last week, oil prices dropped on concerns that Chinese demand might begin to slip.
It appears those concerns are going to be short lived.
According to a report by the IMF this morning, Chinese GDP will rebound strongly to 8.8% in 2013, up from a dip to 8.2% in 2012, propelled largely by increased domestic consumer consumption.
That's important to note since the Chinese also need reliable energy sources to continue this remarkable, ongoing boom.
After all, China needs to...
High Oil Prices: Even $200 Oil Won't Cause a Recession
Last Friday's weak unemployment numbers, with only 120,000 jobs created, brought renewed wails that high oil prices were causing a recession.
Having heard this refrain so many times, I thought I'd dig a little deeper.
After all, a peak of $145 per barrel in the West Texas Intermediate oil price pretty well coincided with the onset of the 2008 recession.
The question is whether or not
Oil and Gasoline: A Tale of Two Prices
A number of you have contacted me asking some variation of the same question.
How can the price of oil be declining, yet the price of gasoline remain so high?
At close of trade yesterday, the West Texas Intermediate (WTI) benchmark futures crude oil contract for the near out month in NYMEX trade had declined 2.6% for the week and 4% for the month.
However, the same contract for RBOB (Reformulated Blendstock for Oxygenate Blending) - the NYMEX gasoline...