$3.05 here in north TX. Probably under $3 further west.
Why haven't gas prices gone down?
- Thread starter grampi
- Start date
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.
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.
Last edited:
Archie Bunker said “ Patience is a Virgin”. We’ll see what happens.
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...
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.
$2.95 In Tennessee
Your saying pretty much what I said. Once a contract is made for a given amount of oil, the oil will be processed by whomever gets it. If the price of a barrel of oil goes down due to the stock market, the price of everything made with that oil will generally go down. Or up if the price of oil keeps going up. Refinery's don't care if the price of oil goes up or down. They sell gas at whatever point makes them the most profit. The won't sell anything if there's no profit in it. No matter what the price of oil is, there's always someone willing to buy it, and make something with it.,,
$3.29 this morning at the Costco Top Tier station in South Carolina (Indian Land.)
The spot price of gasoline is still high. This was close to $2 before the war. Retailers don't necessarily pay this price, they buy on contract, but its a very good gauge. From the EIA below.
So why? The short version is refining capacity. Refining in the middle east is still shut down, China has not been exporting throughout the war, other Asian refiners are still getting caught up, so in many cases ships are still coming here and other places near here to buy refined product.
In fact crude could go really low because there is too much of it to refine.
China just announced there exporting again so that will be a big help depending on how long it actually takes - all the ships are out of position.
So why? The short version is refining capacity. Refining in the middle east is still shut down, China has not been exporting throughout the war, other Asian refiners are still getting caught up, so in many cases ships are still coming here and other places near here to buy refined product.
In fact crude could go really low because there is too much of it to refine.
China just announced there exporting again so that will be a big help depending on how long it actually takes - all the ships are out of position.
E85 @ Casey’s $2.19 (minus $1.82/gal in rewards!)
Interesting. Costco has an investment strategy to place stores on Indian Land in both the USA and Canada. Trivia: They are called Reservations in the USA and Reserves in Canada.
