$100 oil = $40-$60 speculation
I was always wondering how the Market hype actually affects the price at the pump. Here is what I was able to find out.
One barrel of crude oil makes about 19½ gallons of gasoline, 9 gallons of fuel oil, 4 gallons of jet fuel, and 11 gallons of other products, including lubricants, kerosene, asphalt, and petrochemical feedstocks to make plastics.
The current price at the pump is about $3…
At $3 per gallon * 19.5 gallons in one barrel = $58.50 per barrel. $100 per barrel - $60 actual cost or about $40 in market speculation…
In actuality the price per barrel is much lower considering the actual cost breakdown…
At $3 per gallon the raw cost is about $1.98 per gallon…
($3 * 66% = $1.98 per gallon (Actual cost of crude, 40% plus refining costs 13%, plus distribution 13%, excluding taxes)
The total cost is 19.5 * $1.98 = $38.61 per barrel raw costs.
Source:
http://www.gravmag.com/oil.html