October 2011

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America’s Oil and Natural Gas Industry

What’s Up WithGasoline Prices?

What’s Up With Gasoline Prices?|October 2011

Gasoline, Diesel, and Crude Oil PricesPage 1Oil Prices Relate to Many Uncertain FactorsPage 2World Liquid Fuel ConsumptionPage 3Growth in World Liquid Fuel ConsumptionPage 4OPEC Surplus Crude Oil Production CapacityPage 5Accumulating Risks to the Development of Oil and Natural GasPage 6Sources of Crude and Product SupplyPage 7Strategic Petroleum ReservePage 8Commodity PerformancePage 9West Texas Intermediate Crude in Dollars, Euros, and YenPage 10EIA Price ForecastPage 11What Consumers are Paying for at the Gasoline PumpPage 12Gasoline Taxes by StatePage 13Fuel-Saving Tips for DriversPage 14

Table of Contents

Page 1What’s Up With Gasoline Prices?|October 2011

Changes in gasoline anddiesel prices mirrorchanges in crude oil prices.

The roller coaster rise and fall in gasolineand diesel prices over the last couple ofyears tracks changes in the cost of crudeoil. Those changes are determined in theglobal crude oil market by the worldwidedemand for and supply of crude oil. Weakeconomic conditions in the U.S. andaround the world in 2008 and into 2009led to less demand which helped pushprices down.With the worldwide economic recoveryunderway in 2010, demand is on therise again but unrest in the Mideast andNorth Africa has put supplies at risk. Thiscombination of rising demand andreduced supply helped to push priceshigher earlier this year. Now, slower thanexpected economic growth is pullingprices downward.

Gasoline, Diesel and Crude Oil Prices

Source: NYMEX (WTI crude oil) and AAA (gasoline and diesel).