One ingredient that helps the economy run like a well-oiled machine oil, like most persons will agree. So when oil prices go up, it can affect a lot more than how much you pay at the pump.
In this article, we will discuss what the price of gas means for your wallet, and how you can help your wallet in times of high gas price. Lets get into it.
- How does Gas Price Affects your Wallet?
- What does it mean When Gas Prices are Low?
- What Factors affect Gas Prices?
- How does Oil Prices affect the Economy?
- Why do Gas Prices Change Every day?
- What State has lowest Gas Prices?
- Why is Oil so Cheap Right Now?
- Who Controls the Price of Gas?
- Are Low Oil Prices good for the Economy?
How does Gas Price Affects your Wallet?
Below are some likely effects of gas or oil price on your wallet.
You could pay more for everything from flights to food. A lot of businesses rely on planes, trains, automobiles, and other machinery that require oil to get the job done. When oil prices rise, some pass those higher costs onto consumers. On top of more expensive utility bills and plane tickets, you could pay more for everything from food harvested with gas-powered tractors to furniture shipped cross-country.
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Your investments may hit some turbulence. When the cost of doing business goes up, bottom lines can take a hit. Meaning stock prices for companies that rely on oil — airlines, cruise lines, and even big shipping retailers like Amazon — could go down. But it’s not all bad. Oil and gas stocks (think: Halliburton and Chevron) tend to have really good days when oil prices jump.
The economy will (probably) keep on keepin on. In the past, high oil prices have been linked to some not-so-fun economic activity. Like recessions. But experts say that’s less likely to happen now, thanks to more domestic oil production and an economy that relies less on the manufacturing industry than it used to.
A big jump in oil prices might not be enough to change the path the economy’s driving down. But it could affect what you pay for a lot of necessities. And your investments. So power up your personal savings where you can by looking for easy ways to save on your utility and food bills.
What does it mean When Gas Prices are Low?
Gas stations typically post their prices on large street-side signs. Since consumers are very sensitive to price, gas stations often strive to meet or beat their competitors’ posted rates so they do not lose customers.
As a result, competing gas stations often charge similar or identical prices. Charging the same price is not illegal unless competing gas stations reach an agreement to do so.
Gas prices can change quickly
The fact that prices for gasoline can change quickly is generally an indication that competition is working. Prices go up or down as retailers compete, and each tries to match what the other is charging.
Prices at the pumps also depend on the wholesale price that gas stations must pay their suppliers, which can change on a daily basis.
Price swings are also caused by changes in the level of consumer demand. Prices typically go up when demand is higher (for example, when more people are traveling) and go down when demand is lower.
Factors that affect the global or local gasoline supply also result in price changes. Prices typically go up when supply is reduced (for example, when oil refineries shut down for maintenance or due to a hurricane), and go down when the supply of gas increases.
Gas prices can be higher in some parts of the Country
There are a number of factors that can affect the final price of gas at the pumps from one region of Canada for example to another:
- All provinces and territories place different taxes on gasoline. Higher taxes contribute to higher prices at the pumps.
- Retailers in large cities usually sell more gas, which means they can charge less per litre and still make a profit.
- Local supply and demand conditions vary from region to region, including the number, size, and type of competitors. The presence of one or more aggressive price competitors in a local market may lead to lower prices.
- It costs more to transport gasoline to the pumps in some regions of Canada, such as remote areas that are far from major cities. These higher transportation costs will show up in the price of gas.
Differences between Canadian and American gas prices
Differences in prices at the pumps between Canada and the United States are generally due to our different currency values and tax rates.
When we factor in the currency exchange rate and remove the effect of different tax rates, Canadian and American gasoline prices are generally comparable. Canadian prices are sometimes lower than American prices.
The prices of gasoline, crude oil, diesel fuel and home heating oil don’t always rise and fall together
Gasoline prices generally track crude prices. However, there can be a delay of up to two months before decreases or increases in crude oil prices are passed along to consumers.
Unlike gasoline, the demand for home heating oil is seasonal, and the product is usually bought under contract from a supplier for an entire season, at prices that tend to be consistent.
The demand for diesel fuel, which mostly comes from truckers and farmers, is also relatively constant. Like with home heating oil, trucking fleets usually negotiate a diesel contract with one supplier. As a result, diesel prices tend to be more consistent than gasoline.
What Factors affect Gas Prices?
When gasoline prices rise, consumers certainly notice at the pump. But many people have very little idea why the amount of money needed to fill their car’s tank rises and falls. Here, we take a look at the factors that determine the price consumers pay from day to day.
Oil Prices: The Crude Reality
Logically enough, the price of gasoline is determined in part by the price of oil. But a whole host of other factors impact the average retail price of gas.
According to the U.S. Energy Information Administration, the price of crude oil actually comprised only 54% of the average retail cost of gasoline in 2019. Federal and state taxes were the next highest cost factor, averaging 18%, followed by distribution and marketing costs, refining costs, and profits.
Those figures varied between 2010 and 2019 but, overall, the price of crude oil comprised 59% of the average retail cost of gasoline.
To understand how gas prices are set, consider the core factors of supply, demand, inflation, and taxes. While supply and demand get the most focus (and the most blame), inflation and taxes also play a part in increases in the cost to consumers. The law of supply and demand has a predictable impact on the price of gas. Less predictable are how the supply side and demand side will change over time.
Oil Supply
Oil does not come out of the ground in the same form everywhere it is discovered. It is graded by its viscosity (i.e. light to heavy) and by the degree of impurities such as sulfur that it contains (i.e. sweet to sour).
The price for oil that is widely quoted is for light/sweet crude. This type of oil is in high demand because it contains fewer impurities and takes less time for refineries to process into gasoline. As oil gets thicker, or “heavier,” it contains more impurities and requires more processing to refine into gasoline.
There is a positive correlation between crude oil and gasoline prices. It seems logical there would be a positive correlation between the commodities, especially since gasoline is a product of refining crude oil.
Light/sweet crude is simply becoming scarcer and harder to obtain. As the supply of this preferred oil becomes constrained, the price climbs. On the other hand, heavy/sour crude is widely available throughout the world. The price of heavy/sour crude is lower, sometimes substantially lower, than light/sweet crude to compensate for the higher cost to process it.
Note that oil supply among large producing nations is regulated by the cartel called OPEC (organization of petroleum exporting countries). OPEC’s 14 members aim to regulate the supply of oil in order to set the price on the world market.
Within OPEC, each member nation is allocated a production quota. International oil companies operate independently of OPEC, but because OPEC controls a larger percentage of world crude oil exports (supply not consumed by the producing nation), OPEC’s policies impact the price of oil worldwide. If the demand for a good increases while supply remains constant, the price of that good will rise.
While oil companies might benefit from OPEC’s supply constraints, they do not participate in OPEC’s decision-making process, and could just as easily be hurt by OPEC’s policies if OPEC (assuming its member nations were able) decided to attempt to increase the supply of oil worldwide.
Consumer Demand
The growth in the number of people driving cars and trucks, particularly in parts of the developing world, has expanded dramatically over the last few years. China and India, each with populations in excess of one billion, are experiencing expanding middle classes that will likely drive more cars and use more gasoline over time.
China alone had built more than 80,000 miles of interprovincial highway by late 2020, and it is continuing to add more than 6,000 miles a year, according to a Chinese government site.
By comparison, the U.S. has a total of about 47,000 miles of interstate highway, according to the Federal Highway Administration.
Many countries subsidize the retail price of gasoline to encourage industrial development and gain popular support, creating an artificially higher demand for gasoline.
Creating a Balance
Prices help allocate scarce goods. That is, consumers respond to higher prices for any commodity by using less of it. Although demand for gasoline is elastic in the long term, small disparities in supply and demand in either direction will not have a significant impact on prices in the short run. This inelasticity of demand means if prices go up, demand goes down, but not by very much.
The reason is that people are locked into their lifestyles for the near term. While they may change their fuel consumption by buying more fuel-efficient vehicles, moving closer to work, or taking public transportation, they can’t or won’t do so in response to a temporary hike in prices.
The price will balance the supply of gasoline with the demand for it. The global nature of the market for gasoline assures that balance.
That leaves inflation and taxes to account for the biggest relative increases in the price of gasoline.
Other Considerations: Inflation and Taxes
Inflation is the general rate at which the prices of products and services are rising (and, conversely, the rate at which purchasing power is falling). In the U.S., an item that cost $1 in January 1950 might cost about $10.98 in January 2021.
In 1950, gas cost about 27 cents per gallon.5 Adjusting for inflation, a gallon of gas should cost about $2.98 in January 2020, assuming taxes, supply, and demand stayed the same.
The tax on a gallon of gas in 1950 was 1.5 cents.6 In July 2019, the combined federal, state, and local taxes on a gallon of gasoline averaged 18% of the total price. Federal tax made up 18.4 cents, while state tax made up 29.66 cents.
Other countries have vastly different tax policies for gasoline, some of which can make taxes the largest price component.
So, gas prices, like most other commodities, are ruled by the forces of supply and demand. Holding demand constant, when supply rises prices fall and. Holding supply constant, when demand goes up, so do prices.
How does Oil Prices affect the Economy?
As a consumer, you may already understand the microeconomic implications of higher oil prices. When observing higher oil prices, most of us are likely to think about the price of gasoline as well, since gasoline purchases are necessary for most households.
When gasoline prices increase, a larger share of households’ budgets is likely to be spent on it, which leaves less to spend on other goods and services. The same goes for businesses whose goods must be shipped from place to place or that use fuel as a major input (such as the airline industry).
Higher oil prices tend to make production more expensive for businesses, just as they make it more expensive for households to do the things they normally do.
So, when oil prices spike, you can expect gasoline prices to spike as well, and that affects the costs faced by the vast majority of households and businesses.
We have just explained how oil prices affect households and businesses; it is not a far leap to understand how oil prices affect the macroeconomy. Oil price increases are generally thought to increase inflation and reduce economic growth. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products.
As mentioned above, oil prices indirectly affect costs such as transportation, manufacturing, and heating. The increase in these costs can in turn affect the prices of a variety of goods and services, as producers may pass production costs on to consumers. The extent to which oil price increases lead to consumption price increases depends on how important oil is for the production of a given type of good or service.
Oil price increases can also stifle the growth of the economy through their effect on the supply and demand for goods other than oil. Increases in oil prices can depress the supply of other goods because they increase the costs of producing them. In economics terminology, high oil prices can shift up the supply curve for the goods and services for which oil is an input.
High oil prices also can reduce demand for other goods because they reduce wealth, as well as induce uncertainty about the future. One way to analyze the effects of higher oil prices is to think about the higher prices as a tax on consumers.
The simplest example occurs in the case of imported oil. The extra payment that U.S. consumers make to foreign oil producers can now no longer be spent on other kinds of consumption goods.
Despite these effects on supply and demand, the correlation between oil price increases and economic downturns in the U.S. is not perfect. Not every sizeable oil price increase has been followed by a recession. However, five of the last seven U.S. recessions were preceded by considerable increases in oil prices.
Why do Gas Prices Change Every day?
Not a day goes by when the price of gas at the station near your house remains the same. Despite the vast majority of goods in the world being sold at consistent prices day after day, gasoline constantly fluctuates, to the point that a tank of gas could cost you $5 more later the same day. We all complain about this, but hardly anyone knows why this happens.
We’ve done some research and have identified the top five influences on gas prices.
Crude Oil Prices: Because refined gasoline comes from crude oil—a commodity that is traded and imported across the globe from particular sources—the going price of crude oil heavily affects gas prices. If certain exporting suppliers raise their prices or refrain from doing business, the cost of importing and purchasing crude oil increases, and those costs are eventually passed down to consumers at the pump.
Supply: Similarly, if there is a shortage or decrease in the supply of gasoline/crude oil, such as an oil shipment spill or natural disaster, gas prices will increase quickly and dramatically.
Consumer Demand: Like any commodity or good, supply and demand impact prices. In the case of gasoline, which has finite quantities available, prices tend to be higher in the warm seasons and around holidays when people travel most and gasoline is in higher demand.
Cost of Creating Gasoline: Crude oil doesn’t just show up at gas stations ready to be pumped. It requires refining and transportation. If the cost of either of these factors increases, gas prices will in turn rise to compensate for the extra profit drain.
Market Confidence: All of these previous factors influence market confidence. Economics is all about confidence and speculation, and if people are worried that there won’t be enough gas to go around, they’ll buckle down and raise prices, preparing for the worst. If the market is relaxed and trusting, then grips on wallets will loosen and prices will fall. This is the aspect that’s the hardest to understand, track, and predict, so it’s often where the most conspiracy theorizing happens.
What State has lowest Gas Prices?
A year earlier, the average price of a gallon of regular gasoline was $1.73.
Hawaii leads the nation at $2.42 a gallon for regular, followed by California at $2.25 and Nevada at $2.20.
These figures are averages for each state. Gas prices within each state can vary greatly.
The AAA’s Daily Fuel Gauge Report is based on a survey of over 60,000 self-serve stations.
| State | Regular | Mid | Premium | Diesel |
| Alabama | $1.89 | $2.03 | $2.09 | $2.11 |
| Alaska | $1.98 | $2.10 | $2.22 | $2.06 |
| Arkansas | $1.92 | $2.02 | $2.15 | $2.12 |
| Arizona | $2.03 | $2.12 | $2.24 | $2.30 |
| California | $2.25 | $2.39 | $2.43 | $2.48 |
| Colorado | $2.00 | $2.14 | $2.23 | $2.20 |
| Connecticut | $2.01 | $2.18 | $2.24 | $2.34 |
| District of Columbia | $2.00 | $2.12 | $2.19 | $2.21 |
| Delaware | $1.91 | $2.03 | $2.12 | $2.21 |
| Florida | $1.99 | $2.15 | $2.19 | $2.23 |
| Georgia | $1.88 | $2.02 | $2.11 | $2.09 |
| Hawaii | $2.42 | $2.56 | $2.61 | $2.66 |
| Iowa | $1.95 | $2.06 | $2.15 | $2.14 |
| Idaho | $1.99 | $2.10 | $2.16 | $2.47 |
| Illinois | $2.03 | $2.19 | $2.25 | $2.27 |
| Indiana | $2.02 | $2.17 | $2.23 | $2.14 |
| Kansas | $2.00 | $2.05 | $2.13 | $2.17 |
| Kentucky | $1.95 | $2.09 | $2.18 | $2.07 |
| Louisiana | $1.88 | $2.00 | $2.09 | $2.09 |
| Massachusetts | $1.95 | $2.10 | $2.17 | $2.26 |
| Maryland | $1.95 | $2.07 | $2.12 | $2.21 |
| Maine | $1.99 | $2.14 | $2.20 | $2.26 |
| Michigan | $2.08 | $2.20 | $2.29 | $2.20 |
| Minnesota | $1.99 | $2.07 | $2.13 | $2.19 |
| Missouri | $1.92 | $2.00 | $2.12 | $2.06 |
| Mississippi | $1.89 | $1.99 | $2.08 | $2.07 |
| Montana | $2.04 | $2.12 | $2.23 | $2.36 |
| North Carolina | $1.91 | $2.03 | $2.12 | $2.13 |
| North Dakota | $2.04 | $2.11 | $2.18 | $2.20 |
| Nebraska | $2.04 | $2.09 | $2.14 | $2.18 |
| New Hampshire | $1.93 | $2.10 | $2.17 | $2.24 |
| New Jersey | $1.83 | $1.96 | $2.04 | $2.13 |
| New Mexico | $1.98 | $2.11 | $2.20 | $2.19 |
| Nevada | $2.20 | $2.31 | $2.40 | $2.37 |
| New York | $2.06 | $2.20 | $2.25 | $2.37 |
| Ohio | $2.04 | $2.18 | $2.27 | $2.22 |
| Oklahoma | $1.91 | $1.98 | $2.09 | $2.05 |
| Oregon | $2.08 | $2.19 | $2.22 | $2.66 |
| Pennsylvania | $1.98 | $2.08 | $2.18 | $2.30 |
| Rhode Island | $1.98 | $2.11 | $2.18 | $2.29 |
| South Carolina | $1.84 | $1.96 | $2.05 | $2.06 |
| South Dakota | $2.01 | $2.14 | $2.23 | $2.18 |
| Tennessee | $1.89 | $2.00 | $2.10 | $2.09 |
| Texas | $1.87 | $1.98 | $2.05 | $2.08 |
| Utah | $1.95 | $2.05 | $2.14 | $2.31 |
| Virginia | $1.87 | $1.96 | $2.04 | $2.11 |
| Vermont | $1.95 | $2.10 | $2.19 | $2.33 |
| Washington | $2.07 | $2.15 | $2.25 | $2.72 |
| Wisconsin | $2.06 | $2.14 | $2.23 | $2.23 |
| West Virginia | $2.03 | $2.12 | $2.22 | $2.23 |
| Wyoming | $1.92 | $2.00 | $2.14 | $2.14 |
| Source: AAA |
Why is Oil so Cheap Right Now?
Except in China, where virus-related travel restrictions are being lifted, most people in the world are not moving. Oil, of course, is for moving. Many analysts project that world demand for crude in April could plummet by 30%. That would be the worst dive ever — almost.
“We saw an equivalent drop from 1929 to 1934,” Philip Verleger, longtime energy economist and senior energy adviser in the Carter administration, said. “Crude prices went from $2 a barrel to 25 cents. A 90% drop.”
To avoid a repeat of that, oil producers are trying to respond. American oil and gas executives met at the White House Friday to discuss policy responses. And Monday, representatives of OPEC and Russia are expected to meet by video to consider joint supply cuts. But to many, discussions of oil supply are a sideshow.
“You know, the suppliers are sexy and the demand is boring,” Sarah Ladislaw, energy fellow and vice president at the Center for Strategic and International Studies. “But the reality is that there’s probably not a lot suppliers can do in terms of supply cuts, because the demand destruction is just so large.”
Because demand has plunged spectacularly, the world’s oil is projected to run out of storage space in the next few months. Crude oil would physically have no place to go, forcing producers to stop pumping abruptly. Prices could collapse further. To avoid that scenario, the world’s largest oil suppliers are mulling unheard of supply cuts to match the historic destruction in demand.
“Russia, Saudi Arabia and the U.S. are producing something like 35 million barrels” per day, Per Magnus Nysveen, lead analyst and senior partner of Rystad Energy, said. “If they are cutting up to 15 million barrels [daily], they are cutting up to half their production. Extremely dramatic.”
They are trying to survive until a possible recovery in demand next year. Ladislaw, however, warns that would only happen if the virus is contained and people are and driving and flying again.
Who Controls the Price of Gas?
The cost of crude oil is the largest component of the retail price of gasoline, and the cost of crude oil as a share of the retail gasoline price varies over time and across regions of the country. Increases in U.S. oil production in the past several years have helped reduce upward pressure on oil and gasoline prices.
Taxes add to the price of gasoline
Federal, state, and local government taxes also contribute to the retail price of gasoline. The federal gasoline excise tax is 18.30¢ per gallon and the federal Leaking Underground Storage Tank fee is 0.1¢ per gallon. As of July 1, 2019, total state taxes and fees on gasoline averaged 29.66¢ per gallon. Sales taxes along with taxes applied by local and municipal governments can have a significant impact on the price of gasoline in some locations.
Refining costs and profits
Refining costs and profits vary seasonally and by region in the United States, partly because of the different gasoline formulations required to reduce air pollution in different parts of the country. The characteristics of the gasoline produced depend on the type of crude oil that is used and the type of processing technology available at the refinery where it is produced.
Gasoline prices are also affected by the cost of other ingredients that may be blended into the gasoline, including fuel ethanol. Gasoline demand usually increases in the summer, which generally results in higher prices.
Distribution and marketing
Distribution, marketing, and retail dealer costs and profits are also included in the retail price of gasoline. Most gasoline is shipped from refineries by pipeline to terminals near consuming areas, where it may be blended with other products —such as fuel ethanol—to meet local government and market specifications. Gasoline is delivered by tanker truck to individual gasoline stations.
Some retail outlets are owned and operated by refiners, while others are independent businesses that purchase gasoline from refiners and marketers for resale to the public. The price at the pump also reflects local market conditions and factors, such as the fueling location and the marketing strategy of the owner.
The cost of doing business by individual gasoline retailers can vary greatly depending on where a gasoline fueling station is located. These costs include wages and salaries, benefits, equipment, lease or rent payments, insurance, overhead, and state and local fees.
Even retail stations close to each other can have different traffic patterns, rent, and sources of supply that affect their prices. The number and location of local competitors can also affect prices.
Are Low Oil Prices good for the Economy?
The extraction of oil and natural gas from shale has reduced the amount of oil the United States needs to import and is adding to the economy in the forms of jobs, investment, and growth. Oil exploration and production is again an important industry in the United States. In this article, we will look at how oil prices impact the U.S. economy for example.
A Reversal of Fortune
In the 1990s and early 2000s, the United States was struggling under declining domestic oil production and the resulting need to import more oil. Wells in Texas and other regions were still producing, but falling far short of meeting growing energy demands.
In the latter half of the 2000s, however, new technology allowed companies to economically draw oil and gas from shale deposits that were once considered depleted because the cost of extraction would be impractical.
Higher prices per barrel of oil also helped to justify the cost of a hydraulically fractured well (also known as fracking). The United States is once again one of the top producers of oil and gas. Greater domestic oil production is a net positive for the United States. However, as an oil-producing country (and not just an oil consumer), the United States now also feels an unpleasant pinch when oil prices drop.
Oil and the Cost of Doing Business
The price of oil influences the costs of other production and manufacturing across the United States. For example, there is the direct correlation between the cost of gasoline or airplane fuel to the price of transporting goods and people. A drop in fuel prices means lower transport costs and cheaper airline tickets. As many industrial chemicals are refined from oil, lower oil prices benefit the manufacturing sector.
Before the resurgence in U.S. oil production, drops in the price of oil were largely viewed as positive because it lowered the price of importing oil and reduced costs for the manufacturing and transport sectors. This reduction of costs could be passed on to the consumer.
Greater discretionary income for consumer spending can further stimulate the economy. However now that the United States has increased oil production, low oil prices can hurt U.S. oil companies and affect domestic oil industry workers.
Conversely, high oil prices add to the costs of doing business. And these costs are area also ultimately passed on to customers and businesses. Whether it is higher cab fares, more expensive airline tickets, the cost of apples shipped from California, or new furniture shipped from China, high oil prices can result in higher prices for seemingly unrelated products and services.
Job Growth and Investment Dollars
The exploration and production of U.S. shale deposits have been a strong source of job growth. The hydraulically fractured wells tend to have a shorter production life, so there is always new drilling activity to find the next deposit. All this activity requires labor including drilling crews, loader operators, truck drivers, diesel mechanics, and so on. The people working in these areas then support surrounding businesses like hotels, restaurants, and car dealerships.
Lower oil prices mean less drilling and exploration activity because most of the new oil driving the economic activity is unconventional and has a higher cost per barrel than a conventional source of oil. Less activity can lead to layoffs which can hurt the local businesses that catered to these workers.
Therefore, the negative impact will be felt keenly in the shale regions even as some of the positive impacts of lower oil prices start to show in other regions of the United States. This is regionally painful for the country and effects show in state-level unemployment statistics. However, these losses may not have a noticeable impact on national unemployment numbers.
The other groups that tend to suffer when U.S. oil prices drop are the banking and investment sectors. There are a lot of different companies drilling and servicing wells on the shale deposits, and many of these companies finance their operations by raising capital and taking on debt.
This means that investors and banks both have money to lose if the price of oil drops to where new wells are no longer profitable and the companies dependent on drilling and service then go out of business. Of course, investors and bankers are well-versed in risks and rewards, but the losses still destroy capital when they happen. Between the job losses and the capital losses, a dip in oil prices can trim the growth of the U.S. economy.
The Benefits of Diversity
Even with the loss of growth, the U.S. economy isn’t nearly as tied to the price of oil as some of the other top production nations. The U.S. economy is incredibly diverse. Although oil and gas production has been one driver of recent growth, it is far from the most important sector of the economy. It is, of course, connected to other sectors and losing growth in one can weaken others, but sectors like manufacturing gain more than they lose.
The U.S. economy can take a lot of hits and keep on going because so many sectors contribute to it without any single dominant sector. The same can’t be said about some other oil-producing nations like Russia or Venezuela whose fortunes rise and sink with the price of oil.
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In short, the U.S. economy has the room to adapt to prolonged periods of high or low oil prices. This means it takes more than just low oil to shake the U.S. economy, but it is not uncommon for oil prices, high or low, to increase the impact of economic shocks.
Oil prices do have an impact on the U.S. economy, but it goes two ways because of the diversity of industries. High oil prices can drive job creation and investment as it becomes economically viable for oil companies to exploit higher-cost shale oil deposits. However, high oil prices also hit business and consumers with higher transportation and manufacturing costs. Lower oil prices hurt the unconventional oil activity, but benefits manufacturing and other sectors where fuel costs are a primary concern.
Final Thought
But, the primacy of oil will continue to remain at least in the foreseeable future and though changes are taking place to reduce the dependence on oil, it is likely to take at least a decade or two for these to begin to have any major effect on the usage of oil and its variants. Till that time, it is important that you watch oil prices live and understand how it is likely to affect your wallet in the short and medium term.
