The war picture is constantly changing, but so are the prices, writes economist BRuceYandle. 'Even outside the conflict zone, we continue to see signs of disruption, especially the significant gasoline premium being felt, and some acceptance of it.'
Strangely, given the profound nature of the situation, the prices of gold and oil — and how they translate into gasoline prices at the pump — give a market-based insight into how deeply disturbed the world is.
Changes in oil prices convey valuable information about the availability of a crucially important resource and can inspire energy-conserving innovation and rerouting of substitutes. On March 8, crude oil was fetching $128 a barrel on the Chicago Mercantile Exchange, up from $92.80 since Feb. 23. Obviously, world petroleum markets were more disturbed by the invasion than were gold markets. On March 15, the early morning price was $92.33, slightly below the Feb.
From 1990 through 2015, this measurement cycled at around 15 barrels of oil per ounce of gold. Things changed after 2015 when a major innovation in U.S. fracking entered the picture. From there, oil got cheaper and the fluctuation is around 20 barrels for an ounce of gold. But on March 8, the ratio came back down to 16.1 — well below the 20.6 that could have been purchased on Feb. 23.
But sadly for U.S. consumers, on March 15, the average U.S. price of gasoline still stood at a lofty $4.31 a gallon. Gas prices are driven by more than just the price of crude. Other factors include refining capacity, transportation, and spring revisions in the formula required by EPA for major urban regions.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Oil prices are the ‘linchpin’ for markets as Russia wages war on Ukraine, says CIO Bob DollFor stock market investors, a lot may be riding on oil prices as the Russia-Ukraine war persists, according to Bob Doll, chief investment officer of...
Read more »
Airline giant Delta warns oil increases mean higher ticket pricesThe jump in oil prices since Russia invaded Ukraine is set to lead to higher airfares.
Read more »
U.S. stock futures struggle after Fed hike, amid rising oil prices, Ukraine violenceA day after the Fed hike, stock futures pointed to a struggle for Thursday, with Ukraine violence and higher oil prices in the spotlight.
Read more »
Gold Price Forecast: XAU/USD eyes worst week in four months below $1,950 as Ukraine woes intensifyGold Price Forecast: XAU/USD eyes worst week in four months below $1,950 as Ukraine woes intensify By anilpanchal7 Gold XAUUSD Ukraine China Commodities
Read more »