Gas Prices Soar: Should US Release Oil?

AAA reports that the average price for a gallon of regular gas nationally is $3.52, up 40 cents from just a month ago. Clearly this is not good news for consumers, but are we at a crisis point?

This morning onCBS3, I discussed what's behind the spike in oil (hint: it's not really all about Libya's 0.5 percent of global oil production!); what makes up $1 of gas at the pumps; and whether the US government should tap the Strategic Petroleum Reserve to ease the pain at the pumps.

Here are some general facts about US oil imports:

• US produces 40% of oil needed
• ¾ of 60 percent Remaining Oil Need
  
  • Canada
  • Mexico
  • Saudi Arabia
  • Nigeria
  • Venezuela
• SPECULATION TO BLAME!

• Crude oil: 67 cents
• Taxes: 15 cents
• Distribution and Marketing: 11 cents
• Refining: 7 cents

• Every one cent increase at the pump removes $1B from consumers' pockets
• Every $10 increase in a barrel of crude, reduces economic growth by 0.5 percent

Jill Schlesinger

Jill Schlesinger, CFP® is the Emmy-nominated business analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and chief investment officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.

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