The barrel contains 159 liters of oil, and the refiner can produce about 1.78-2.54 liters of gasoline from 3.8 liters of crude oil. One barrel of oil will also produce approximately 64 liters of other useful by-products such as plastic, propane and ammonia.
Currently, 62% of the world’s most widely available crude oil is in the Middle East. The main players are Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar. There are four main factors that govern the price of this precious oil.
a) Availability or supply of crude oil
b) Oil consumption rate
c) Financial markets
d) public policy and regulations
The fundamental economy dictates that high oil supply translates into lower demand, which in turn will lead to low prices, and conversely, if we have low oil supply, it will lead to high demand and, in turn, to higher prices. It is with this basic concept that oil is traded in the financial market. An oil speculator is investing in oil futures, essentially betting on how much oil will cost in the future. Government policies and regulations also have a significant impact on oil prices, for example, laws aimed at preventing climate change are applied through taxation, and this increases the price of gasoline for the consumer.
An important factor that also regulates the price of crude oil is that over the past 50 years it has been valued in US dollars, so fluctuations in this currency can cause price movements to buy a barrel of oil. There has recently been talk of moving from a US dollar-denominated transaction to either the euro or a basket of currencies. It is unknown at this time what he will do after leaving the post.
Finally, we would like to end the discussion of prices by mentioning that in 1956 the geophysicist Hubbert suggested that the world would eventually reach the peak level of oil production, and he introduced the term “peak oil”. Once this level is reached, the world gradually begins to deplete its oil reserves, and this will lead to a sharp and deadly rise in prices.
So why is gasoline more expensive in summer? Well, there are many factors why gasoline is usually more expensive in the summer months, and one reason is increased demand and improved weather, resulting in more motorists on the roads. Another key reason is that when the weather starts to warm up, utilities temporarily close some of their refineries so they can carry out the necessary scheduled maintenance, and this can lead to disruptions in the gasoline supply chain. It should be borne in mind that there are actually two fuel mixtures: winter and summer gasoline. In the summer at gas stations there is a seasonal transition, because the summer mixture helps to reduce smog in the summer season of ozone, which runs from June 1 to September 15 each year. This initiative was launched in the US in 1995 as part of the Reformed Gasoline Program (RFP). So how exactly does a summer blend help reduce pollution? Summer-grade gasoline contains fuel additives known as “oxygen” that burn cleaner, and this is helpful for reducing pollution during the summer season. To learn more about crude oil, read this book.