What commodities are affected by a rise in the price of crude oil?

What is derived from crude oil besides gasoline? Do we use it to produce electricty, in home heating & such ?? What other products price should I expect to go up when the price of oil increases
Thanx

4 Responses to “What commodities are affected by a rise in the price of crude oil?”

  1. pzifisssh Says:

    Well, for starters, how about everything that is transported by air, by rail, by ship, or by truck. Planes and trains and ships and trucks all require petroleum fuels, and the cost of transportation is a significant part of the price that you pay for any goods.

    The cost of transportation is a _big_ chunk of the price that you pay for less expensive goods (e.g., food.) Not only do they need petroleum to bring the food to your neighborhood store, but they also need petroleum to run the tractors and the other machinery that was used to grow it. Also, petroleum is a raw material for the production of some of the pesticides that enable farms to grow as much food as they grow on any given amount of land.

    Besides agricultural chemicals, there’s plenty of other chemicals made from petroleum including virtually all plastic and synthetic rubber, synthetic fibers, dyes and inks, and the asphalt that we use to pave our roads.

  2. West Texas Wildcatter Says:

    Pretty much everything. Petroleum is used to make fertilizers, and tractors run on diesel so food rises with oil costs. Since oil transports everything the cost to import goods ranging from toys to laptops goes up. Electricity isn’t produced from Crude oil anymore but Natural Gas plays a large roll in electricity production. The production of a car consumes 10 times it weight in crude oil durring production. A microchip will consume 650 times its own weight during production. Gasoline is just the tip of the iceberg, and it has the most exposure since its the only "direct link" between people and oil, meaning gas is the only way you directly pay for oil. Pretty much everything else uses oil behind the scenes, it truly does run this world.

    A barrel of crude is directly refined into dozens of compounds. Check out this link to learn more about what crude is directly refined into, but ultimately, crude oil is involved in almost every product manufacture or service on the entire planet. http://science.howstuffworks.com/environmental/energy/oil-refining2.htm

  3. Blue Ashcloud Says:

    Most commodities are affected by oil price fluctuation. However, not all products follow the same dynamic. For example, just because the price of crude oil has increased/decreased today, the price of bourbon tomorrow is not necessarily going to change.

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