Gas Prices Getting Close to 2008 Highs

| About: The United (USO)

Below is a chart showing the distance that both gas prices and oil are currently trading from their 2008 highs. As shown, the price of oil is still 22% from its 2008 high, while the price at the pump is just 10% from its high.

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During the huge oil price run-up in 2008, refiners got squeezed as gas prices rose at a slower rate than the price of oil. You can see the squeeze in the chart below, when the ratio of oil to gas prices ran up to 35+ in mid-2008. (Most consumers didn't realize they were actually getting a relatively good deal when they were paying over $4/gallon back then!) This time around, consumers aren't getting as good of a deal, and it's becoming more and more painful to fill up.