“Now the king told the boogie men, you have to let that raga drop.
The oil down the desert way, has been shakin’ to the top.”
-The Clash - Rock the Casbah
The United States is the world’s largest oil consuming country, and as citizens, we are sensitive to the changes in fuel prices. Crude oil prices reached an all-time high during July 2008 at $145 per barrel. Oil executives were called to testify before congress and alternative energy research sharply increased. People were trading in their SUVs for hybrids. Some people even sold their homes to move closer to their place of employment.
Since then, oil prices have declined considerably due to over production, slowing demand by China and concerns about additional supply from Iran (removal of sanctions allows Iran to resume exporting oil). During January 2016, the price per barrel of oil fell below $27! Now US auto sales are near record levels with deliveries of pickup trucks and SUVs rising and sedans falling. How quickly we forget…
“What goes up, must come down.
Spinning wheel got to go round.”
-Blood, Sweat & Tears – Spinning Wheel
Whether oil prices are high or low or somewhere in the middle, I thought it would be fun to bring some perspective. On my way home from the office, I stopped by a grocery store and looked at some items we all may have in our household. Trying to be a savvy shopper, I identified the size that provided the best value for each product and then extrapolated how much it would theoretically cost “per barrel” of each item. Costco has nothing on me!
Considering the amount of time, effort and money it takes to secure the rights to drill, extract, transport and process crude oil, it is amazing how little we pay for fuel. Or is it that we pay too much for other items we use daily?
Enjoy!
|
Product |
Cost/Barrel |
|
Oil (Brent Crude on 4/21/2016) |
$45 |
|
Dasani Bottled Water (Available for free in many locations) |
$66 |
|
Milk |
$100 |
|
Coca Cola |
$118 |
|
Gatorade |
$168 |
|
Clorox Bleach |
$185 |
|
Budweiser |
$355 |
|
Tropicana Orange Juice |
$362 |
|
Hersey’s Chocolate Syrup (Who doesn’t like chocolate syrup?) |
$535 |
|
Heinz Ketchup |
$605 |
|
Monster Energy Drink - Gronk (Go Patriots!) |
$672 |
|
Tide Laundry Detergent |
$700 |
|
Starbucks Venti Iced Coffee |
$793 |
|
Windex |
$887 |
|
Listerine |
$952 |
|
California Merlot by Robert Mondavi |
$1,048 |
|
Hidden Valley Ranch Salad Dressing (My son’s favorite condiment) |
$1,072 |
|
Ben & Jerry’s Iced Cream |
$1,341 |
|
Bertolli Extra Virgin Olive Oil |
$1,896 |
|
Absolute Vodka |
$3,451 |
|
Tabasco (I put it on everything except cereal) |
$3,490 |
|
Colgate Toothpaste |
$3,754 |
|
McCormick Pure Vanilla Extract |
$14,757 |
|
Chapstick Lip Baum |
$35,840 |
|
Afrin Nasal Spray (Allergy season anyone?) |
$40,039 |
|
Visine |
$41,271 |
Information provided is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Investments in the energy sector are not suitable for all investors. Further information regarding these investments is available from your financial advisor.
Opinions expressed are not necessarily those of Raymond James & Associates. Information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. Past performance may not be indicative of future results.
