Thursday, October 07, 2004

NewsClip: Brother, can you spare ten ounces of light, sweet crude?

"Crude oil in New York rose to a record $53 a barrel after rising 14 of the last 16 sessions on concern that U.S. supplies will be inadequate to meet winter demand."

Read more ...

Lessee ... 42 gallons in a barrel of oil. That works out to not quite a penny an ounce.

Another little factoid: The yield of gasoline from crude ranges from about 35% to about 50% -- which means that the manufacturing cost of gasoline at these price levels is going to be somewhere between $2.50 and $3.60 per gallon. No, not the pump price -- the refining cost. That doesn't include little niceties like shipping, taxes, retailer markup, etc.

I wouldn't be planning any cross-country road trips in the muscle car if I were you.

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