Petroleum : A Historical Review

The effect that rising oil prices have on a market is not directly proportional to the cost of crude oil. For example, while crude oil prices increased 400% from 2003-2008, United States gasoline prices did not rise by the same amount. This is because the profits of distributors and retailers, production costs (such as refining, transportation), and taxes are all part of the price of auto fuel.

There is debate over the effect the current long term elevation of oil prices will have. Some speculate that an oil-price spike could create a recession comparable to those that followed the 1973 and 1979 energy crises or a potentially worse situation such as a global oil crash.

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