To understand these differences between gasoline and oil, we must first explore how these

two are related. "Gasoline is derived from crude oil." The crude oil extracted from the ground
is a dark liquid known as petroleum." Brain (n.d.). Crude oil is processed into petroleum
products including jet fuel, gasoline, heating oil, and diesel before being used. We can see
from the facts above that the two are related, and what happens to one in terms of price will
undoubtedly affect the price of the other.
When there is a scarcity of oil on the market, demand for it rises, pushing the price higher.
Because there is a relationship between oil and gasoline, higher oil prices will also raise
gasoline prices because demand will be strong because oil and gasoline can be substituted for
each other. Looking at the two graphs, one for oil and one for gasoline.

We can see that there is a correlation between the price changes for the two commodities
since changes in the price of crude oil, one of the key components of gasoline, affects
changes in gasoline pricing.
For example
In 2008, the oil price increased to a stunning $99.67 per barrel, up from $72.34 per barrel the
previous year, causing the gasoline price to rise from $20.62 to $2.451, but the increase for
gasoline was minor.
Overall, if you look at the two graphs from 2002 to 2008, you will notice that both prices
were increasing, though not at the same percentage rate.
We can see how demand and supply interact in the markets of the two commodities we just
described. This is the relationship that exists between the oil and gasoline markets; when the
price of oil rises, people may switch to Gas, which increases demand for Gas and can either
sustain or increase the price of the commodity depending on the conditions at hand. The
supply of the commodity also plays a role in this scenario; when there is less supply of oil in
the market, the oil becomes more expensive, which increases demand for gas; all of this
affects both prices and pushes the price up.
References
American Petroleum Institute, (n.d.). Oil & Natural Gas Contribution to U.S. Economy Fact
Sheet. Api.org. https://www.api.org/news-policy-and-issues/taxes/oil-and-natural-
gascontribution-to-us-economy-fact-sheet
Brain, M. (n.d.). How Gasoline Works. Howstuffworks.com.
https://science.howstuffworks.com/gasoline2.htm