Elevated crude oil prices could mean higher prices on products derived from petroleum — everything from tires, to roofing shingles, to plastic containers.
The oil industry touches an enormous amount of every-day products — thousands of them. Here are just a few of the products that are partially derived from petroleum.
The national average for gas prices stands at $4.32 a gallon, according to AAA.
California has the highest average in the nation at $5.72 per gallon. Several regions in the ‘Golden state” recently exceeded $6.00 after the oil markets skyrocketed amid the Russia-Ukraine war.
One Connecticut–based manufacturer which builds custom displays says he expects his orders for acrylic sheets, a thermoplastic derived from petroleum, to increase substantially.
“I think on future orders, we’re definitely going to see price increases,” Ed Abdelmour, owner of Lorex Plastics, told Yahoo Finance.
Abdelmour says acrylic prices had already risen about 40% amid major supply disruptions during the pandemic. He states they have since come back down to about 4-5% above pre-COVID levels. The recent spike in oil prices though will likely send them up again, at least temporarily.
“I think it all depends on how long this oil problem is,’ said Abdelmour.
U.S. West Texas intermediate (CL=F) and Brent (BZ=F) shot up to multi-year highs last week before sliding a bit this week amid talks between Ukraine and Russia.
Some analysts have warned of higher priced consumer goods derived from oil.
“The public will pay more for lubricants, motor oil, tires, roofing shingles. Local governments who are paving roads pay more for the asphalt which accounts for 15-25% of a paving job. Less roads will be paved,” says strategist Andy Lipow of Lipow Oil Associates
High oil prices are also raising the costs of delivery services as well.
“Fed Ex, UPS, and Amazon delivery services are all being impacted by the soaring diesel prices, and they eventually are going to have to raise their rates,” said Lipow
Last week, Uber (UBER) said that it would will start collecting a temporary surcharge for gas prices, which will go directly to the driver.
Ines is a stock market reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre
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