February 28, 2012
As part of CNN’s In Depth series, Chief Business Correspondent Ali Velshi explains that gas is spiking because of the rising cost of oil and continued buying by speculators.
On rising oil prices, Velshi says, “The price of oil selling at $108.56 yesterday. Now four months – five months ago, the beginning of October, oil was 80 bucks a gallon. $79.20 exactly. This week $108.56. That’s an increase of 40 percent. Now go back to October 1st. Gasoline was $3.40 a gallon. It’s now $3.70 a gallon, roughly that’s an increase of 10 percent. If gas had done what oil had done, and most of the price of a gallon of gasoline comes from the oil that goes into it, that’s the most expensive part, gas would be at $4 – when I do the calculations, $4.76 right now.”