Why haven't gas prices gone down?

[oil pan 4]

$3.05 here in north TX. Probably under $3 further west.

 

[SC Maintenance]

If you’re going to see a lag in consumer spending- and I am not saying we will - you won’t see it for several months. There is always a lag. People run up credit cards. Cut back later. Historically is always this way.

 

[gfh77665]

And so there is no reason for traders to force the price down. The consumers are prepared to pay. Demand is still good. Supply is good.

Then why have prices already came down?

Global supply is increasing sharply as the shipping lanes have reopened.

WTI was at $110 in April, its at $68 right now due to this.

 

[Snagglefoot]

Then why have prices already came down?

Global supply is increasing sharply as the shipping lanes have reopened.

WTI was at $110 in April, its at $68 right now due to this.

I believe the original poster was referring to something like this. Gasoline prices are still about a dollar a gallon more than what they were in mid April. Mods I took this off Gas buddy for a quick review.

 

[Snagglefoot]

Archie Bunker said “ Patience is a Virgin”. We’ll see what happens.

 

[gfh77665]

No doubt that gas prices rise so quickly but come down at a glacial pace. I think that practice might be under scrutiny at the moment though...

 

[RBT]

They are coming down near me.

 

[Snagglefoot]

If all you were buying was oil, and the price dropped $20 a barrel today over yesterday's price, that's the price you would pay. But once the oil enters the refinery and begins being transformed in to gas, diesel,heating oil, jet fuel, and a million other products, the price you pay will be for a finished product. And when the price of oil drops, and stays stable for a few month's, you notice the price of all those products I mentioned will drop also. So if the price of oil starts off high, everything associated with it will also be high.,

Yes. But one small detail is that oil and the products derived from oil are traded separately. There is a final contract for oil when it enters the refinery, and there are final contracts for products when they leave the refinery and are delivered to marketers. Because of that the two can diverge. Low oil prices but still fairly high gasoline prices. Whether the traded price of gasoline comes back to under $2.00 is a function of supply and demand and what the traders think is happening. Fully integrated oil companies can get rather bull headed and refuse to release products at low prices.