What exactly is the co-relation between oil and gas?

Question

am i missing something or are they 2 different things??? why is it that when the price of oil goes down, it seems that so does the price of gas??? i don't get it. what does 1 have to do with the other?

Answer 1

Gasoline (gas) is made from crude oil which is a raw product pumped from the ground.  You can make many things out of oil (petroleum), and one of the most in demand ones is gasoline (which we put in our cars).

Gas can also mean "natural gas" which is a different energy source that comes from the ground - it's a 'gas' in that it has a gaseous state of being like air, or propane gas.  It is not the same thing as gas (gasoline) for your car - a liquid fuel that is refined from crude oil.

Answer 2

Oil is the thick black stuff deep underground that gets mined. It gets refined and turned into gas (which is short for gasoline), which is used as fuel. So oil, essentially, is gasoline. Maybe when people say "gas" you think they mean gas as in the type of matter (like hydrogen gas or toxic gas), when what they really mean is gasoline.

Answer 3

Oil is where gas comes from after it has been refined. So when the price of oil goes up so does the price of gas. Obviously since you can't have one without the other, one controls the price of the other, meaning oil price controls the price of gas. Unfortunate but true.

Have a nice day.