Retail Product Prices Are Driven By Crude Oil
Source: Retail - EIA; Spot - Reuters
Notes:
- Retail prices for both gasoline and diesel fuel have risen strongly over the past two years, driven mostly by the rise in world crude oil prices to their highest levels since the Persian Gulf War.
- Of course, there are a number of other significant factors that impact retail product prices, the most important of which is the supply/demand balance for each product. But the point of this slide is to show that generally speaking, as world crude oil prices rise and fall, so do retail product prices.
- Because of the critical importance of crude oil price levels, my presentation today will look first at global oil supply and demand, and then at the factors that differentiate the markets for each product.
- I’ll also talk briefly about natural gas, and the impact that gas prices are having on some petroleum products.