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  The headline price of oil we see on the news is the "spot" price and is for oil bought and paid for on the open market today.
  
  However, oil companies need security of supply and therefore need to buy forward, hence they will purchase oil in one of 2 ways,
  either by entering into long term contracts with some form of price determination mechanism
  or by buying futures to hedge against price movements
  
  either approach has cost implications and these will be fed into the retail price, they also have timing lags which means it takes time for lower market prices to feed through to pump prices

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