Crude oil prices jump; What that means for consumers

Photo Courtesy: MGNonline

WEST SPRINGFIELD, Mass. — Crude oil prices have jumped 30 percent over the last 11 days.  22News you what that means for you, the consumer.

The price of crude oil directly affects how much you pay for things like gas for your car and heating oil for your home.  Crude oil prices hovered as low as $26 a barrel in recent weeks but has since jumped to about $33 a barrel.

What this means for you, the consumer, is a slight increase in the price of gas when you go to fill up your car, but keep in mind prices are still significantly lower than what they were at this time one year ago.

Right now, AAA reports the average price of gas is $1.75 a gallon, compared to $2.41 per gallon one year ago.

Matt Farkus of St. Germain Investments watches the markets closely.  He told 22News the price of oil moves around a lot on a daily basis, but is likely to stay low in the coming months.

“We’re in a situation where, yeah, oil might slowly rise overtime, but a sharp snap back to 100 dollars a barrel? There’s a pretty small chance of that happening,” Farkus said.

Farkus also reminds the consumer that the cost of gasoline is also made up of the costs to refine the crude oil into gasoline, the costs to distribute and market it, as well as taxes.

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