Short-Term Oil Prices, 2005-2007 (not adjusted for inflation).

Medium-Term Oil Prices, 1994-2007 (not adjusted for inflation).

Long-Term Oil Prices, 1861-2006 (top line adjusted for inflation).

Overnight gas price hike shown at a Chicago area BP-Amoco station (background). The Shell station (foreground) has not yet posted the 12 cent price hike.

References to the price of petroleum are usually either references to the spot price of either WTI/Light Crude as traded on the New York Mercantile Exchange (NYMEX) for delivery in Cushing, Oklahoma^{[citation needed]}; or the price of Brent as traded on the Intercontinental Exchange (ICE, which the International Petroleum Exchange has been incorporated into) for delivery at Sullom Voe^{[citation needed]}. The price of a barrel (which is 42 US gallons or approximately 159 Litres) of oil is highly dependent on both its grade (which is determined by factors such as its specific gravity or API and its sulphur content) and location^{[citation needed]}. The vast majority of oil will not be traded on an exchange but on an over-the-counter basis, typically with reference to a marker crude oil grade that is typically quoted via pricing agencies such as Argus Media Ltd and Platts^{[citation needed]}. For example in Europe a particular grade of oil, say Fulmar, might be sold at a price of "Brent plus US$0.25/barrel"^{[citation needed]}, or as an intra-company transaction. IPE claim that 65% of traded oil is priced off their Brent benchmarks^{[citation needed]}. Other important benchmarks include Dubai, Tapis, and the OPEC basket. The Energy Information Administration (EIA) uses the Imported Refiner Acquisition Cost, the weighted average cost of all oil imported into the US as their "world oil price".^{[citation needed]} Download high resolution version (1024x768, 18 KB)Daily oil prices of NYMEX Light Sweet Crude, prepared from data at http://octane. ... Download high resolution version (1024x768, 18 KB)Daily oil prices of NYMEX Light Sweet Crude, prepared from data at http://octane. ... Image File history File links Size of this preview: 800 × 600 pixel Image in higher resolution (1024 × 768 pixel, file size: 21 KB, MIME type: image/png)Ten-day moving average of prices of NYMEX Light Sweet Crude, taken from data at the New Mexico Institute of Mining and Technology. ... Image File history File links Size of this preview: 800 × 600 pixel Image in higher resolution (1024 × 768 pixel, file size: 21 KB, MIME type: image/png)Ten-day moving average of prices of NYMEX Light Sweet Crude, taken from data at the New Mexico Institute of Mining and Technology. ... Image File history File linksMetadata Download high-resolution version (1520x638, 252 KB) Crude oil price history from 1861-2006, dollars per barrel. ... Image File history File linksMetadata Download high-resolution version (1520x638, 252 KB) Crude oil price history from 1861-2006, dollars per barrel. ... Image File history File links Download high resolution version (1400x800, 467 KB)Image of the heightened price of a gallon of gas in the chicagoland area with an overnight hike (background station) with the foreground gas station not yet caught up. ... Image File history File links Download high resolution version (1400x800, 467 KB)Image of the heightened price of a gallon of gas in the chicagoland area with an overnight hike (background station) with the foreground gas station not yet caught up. ... Pumpjack pumping an oil well near Lubbock, Texas Ignacy Łukasiewicz - inventor of the refining of kerosene from crude oil. ... The spot price of a commodity or a security or a currency is the price that is quoted for settlement (payment and delivery) of the transaction immediately. ... West Texas Intermediate (WTI), also known as Texas Light Sweet, is a type of crude oil used as a benchmark in oil pricing and the underlying commodity of New York Mercantile Exchanges oil futures contracts. ... Light crude oil as opposed to heavy crude oil contains a low content of wax. ... The New York Mercantile Exchange**** NOTE the AMENX is FAKE, created by york-commodities to scam your money, if you send money you will never see it again**** You have been warned. ... Cushing is a city located in Payne County, Oklahoma. ... IntercontinentalExchange® (NYSE: ICE) operates the leading global, electronic marketplace for trading both futures and OTC energy contracts. ... The International Petroleum Exchange, based in London (England), is one of the worlds largest energy futures and options exchanges. ... Sullom Voe is an inlet between North Mainland and Northmavine on Shetland in Scotland, and an oil terminal sited on its shore. ... For other uses, see Barrel (disambiguation). ... The gallon (abbreviation: gal) is a unit of volume. ... The litre or liter (see spelling differences) is a unit of volume. ... The American Petroleum Institute gravity, or API gravity, is a measure of how heavy or light a petroleum liquid is compared to water. ... Over-the-counter (OTC) trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties. ... Argus Media Ltd (formerly known as Petroleum Argus Ltd) is a leading independent provider of price information, market data and business intelligence for the global petroleum, natural gas, electricity and coal industries. ... Platts is a major provider of energy information around the world that has been in business for more than a century and is now a division of McGraw-Hill. ... The Energy Information Administration (EIA), as part of the U.S. Department of Energy, collects and disseminates data on energy reserves, production, consumption, distribution, prices, technology, and related international, economic, and financial matters. ...

Oil demand is highly dependent on global macroeconomic conditions, so this is also an important determinant of price. Some economists claim that high oil prices have a large negative impact on the global growth. This means that the relationship between the oil price and global growth is not particularly stable although a high oil price is often thought of as being a late cycle phenomenon.^{[citation needed]}OPEC, consisting of Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela, was formed to maintain the price of oil at a level most beneficial to its membership considered as a whole, and is considered to be a cartel by most observers^{[citation needed]}. Not to be confused with APEC. OPEC Logo The Organization of the Petroleum Exporting Countries (OPEC) is an international cartel[1][2] made up of Iraq, Indonesia, Iran, Kuwait, Libya, Angola, Algeria, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. ... For the American pop-punk band, see Cartel (band). ...

History

Main articles: 1967 Oil Embargo, 1973 oil crisis, 1979 energy crisis, and Oil price increase of 1990

The 1967 Oil Embargo began on June 6, 1967, one day after the beginning of the Six-Day War, with a joint Arab decision to deter any countries from supporting Israel militarily. ... The 1973 oil crisis began in earnest on October 17, 1973, when the members of Organization of Arab Petroleum Exporting Countries (OAPEC, consisting of the Arab members of OPEC plus Egypt and Syria) announced, as a result of the ongoing Yom Kippur War, that they would no longer ship petroleum... Line at a gas station, June 15, 1979. ... The 1990 (or third) energy crisis was the mildest and most brief of them all. ...

Recent Price history

Main article: Oil price increases of 2004-2007

A recent low point was reached in January 1999 (11 dollars per barrel), after increased oil production from Iraq coincided with the Asian financial crisis, which reduced demand. The prices then rapidly increased, more than doubling by September 2000 (35 dollars per barrel), then fell until the end of 2001 before steadily increasing, reaching US $40 to US $50 per barrel by September 2004. [1] In October 2004, light crude futures contracts on the NYMEX for November delivery exceeded US $53 per barrel and for December delivery exceeded US $55 per barrel. Crude oil prices surged to a record high above $60 a barrel in June 2005, sustaining a rally built on strong demand for gasoline and diesel and on concerns about refiners' ability to keep up. This trend continued into early August 2005, as NYMEX crude oil futures contracts surged past the $65 mark as consumers kept up the demand for gasoline despite its high price. (see Oil price increases of 2004-2006). Crude oil futures peaked at a close of over $77 a barrel in July 2006, and in December 2006 at about $63. That is just about where they began the year 2006.[2] Crude oil prices, 2005-2007 (not adjusted for inflation) U.S. Retail Gasoline prices, 2005-2007 (not adjusted for inflation) Oil prices from 1861-2006 in dollars of the day (black) and 2006 dollars (orange). ... The Asian financial crisis was a financial crisis that started in July 1997 in Thailand and affected currencies, stock markets, and other asset prices in several Asian countries, many considered East Asian Tigers. ... In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. ... This article or section contains speculation and may try to argue its points. ... Early elections in November are announced in the Netherlands. ... December 2006 is the twelfth and final month of the year and will begin in 2 day(s). ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...

On August 1, 2007, US crude reached a new intraday high of $78.77 a barrel after the Energy Information Administration announced that oil stocks in the US were below market expectations and refinery output had increased.^[1] Following further reflection the price later slid backwards.^[2] The Energy Information Administration (EIA), as part of the U.S. Department of Energy, collects and disseminates data on energy reserves, production, consumption, distribution, prices, technology, and related international, economic, and financial matters. ...

On September 14, 2007, US crude (WTI) reached a new intraday high of $80.36 a barrel. Multiple factors have caused this high price. OPEC announced an output increase lesser than expected.^[3] US stocks fall lower than experts predicted^[4] and six pipelines were attacked by a leftist group in Mexico. ^[5] West Texas Intermediate (WTI) is a type of crude oil used as a benchmark in oil pricing and the underlying commodity of New York Mercantile Exchanges oil futures. ... Not to be confused with APEC. OPEC Logo The Organization of the Petroleum Exporting Countries (OPEC) is an international cartel[1][2] made up of Iraq, Indonesia, Iran, Kuwait, Libya, Angola, Algeria, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. ...

On October 16, 2007, US light sweet crude rose to a new record of $87.97 on the news that non-OPEC oil producers were expected to reduce daily output by approximately 110,000 barrels.^[6]

On October 19, 2007, US light crude rose to $90.02 per barrel due to a combination of ongoing tensions in eastern Turkey and the reducing strength of the US dollar.^[7] Prices fell briefly on the expectation of increased US crude oil stocks, however they rose again rapidly to a peak of $92.22 on October 26, 2007 when stocks were revealed to have instead fallen.^[8] This was repeated on October 31, 2007, when an expected 100,000 barrel rise in US crude oil stockpiles turned out to be a 3.9 million barrel fall, pushing US light crude oil prices to another new record of $96.24.^[9] USD redirects here. ... Light crude oil as opposed to heavy crude oil contains a low content of wax. ...

A high price for the foreseeable future

Fatih Birol, chief economist of the International Energy Agency expressed his opinion in October, 2007 that oil prices will remain high for the foreseeable future due to rapid increases in demand from the huge developing economies of India and China.^[10]

Market Listings

Main article: Commodities markets

Oil is marketed as several products in commodities markets. This article or section does not cite its references or sources. ...

• crude oil

Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and elaion – oil or Latin oleum – oil ) or crude oil is a thick, dark brown or greenish liquid. ...

References

Reuters Group plc (LSE: RTR and NASDAQ: RTRSY); pronounced is known as a financial market data provider and a news service that provides reports from around the world to newspapers and broadcasters. ... Not to be confused with APEC. OPEC Logo The Organization of the Petroleum Exporting Countries (OPEC) is an international cartel[1][2] made up of Iraq, Indonesia, Iran, Kuwait, Libya, Angola, Algeria, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. ... EIA may refer to the following: Electronic Industries Alliance Energy Information Administration Environmental Impact Assessment Enzyme-Linked Immunosorbent Assay Equity Indexed Annuity Exercise-induced anaphylaxis This is a disambiguation page, a list of pages that otherwise might share the same title. ... Reuters Group plc (LSE: RTR and NASDAQ: RTRSY); pronounced is known as a financial market data provider and a news service that provides reports from around the world to newspapers and broadcasters. ... BBC News is the department within the BBC responsible for the corporations news-gathering and production of news programmes on BBC television, radio and online. ... BBC News is the department within the BBC responsible for the corporations news-gathering and production of news programmes on BBC television, radio and online. ... BBC News is the department within the BBC responsible for the corporations news-gathering and production of news programmes on BBC television, radio and online. ... BBC News is the department within the BBC responsible for the corporations news-gathering and production of news programmes on BBC television, radio and online. ... The International Herald Tribune is a widely read English language international newspaper. ...

See also

• Asymmetric price transmission
• Benchmark (crude oil)
• Energy efficiency
• Inflation
• Plug-in hybrid
• Price gouging
• Peak oil

Figure 1, Example of the Asymmetric Price Transmission (inset in the bottom right panel). ... [1] Crude oil price Benchamrks were first introduced in the mid 1980s. ... In physics and engineering, including mechanical and electrical engineering, energy efficiency is a dimensionless number, with a value between 0 and 1 or, when multiplied by 100, is given as a percentage. ... Hybrids Plus plug-in hybrid Toyota Prius conversion with PHEV-30 (30 mile or 48 km all-electric range) battery packs A plug-in hybrid electric vehicle (PHEV) is a hybrid vehicle with batteries that can be recharged by connecting a plug to an electric power source. ... Price gouging is a term of variable, but nearly always pejorative, meaning, referring to a sellers asking a price that is much higher than what is seen as fair under the circumstances. ... For other uses, see Peak oil (disambiguation). ...

External links

• HowStuffWorks How Petroleum Prices Work.
• History and Analysis of Crude Oil Prices
• Gasoline and diesel fuel prices, EIA, DoE.
• NYMEX 8 year future prices for light sweet crude