Im sure you have noticed the headlines, oil at 52 week lows, but gas prices have actually gone up, prices near me are still $3.00, little or no downfall since oil has broken down and has fallen greatly below the $50 mark,....as we can see from this article it says BP "RECENTLY" shut down its "LARGEST" crude-oil processing unit due to a "MALFUNCTION" and Exxon with with tens of billions of dollars is still trying to fix a refinery due to an explosion that took place 6 months ago....those 2 MINOR little problems are causing the national average of gas prices to rise, "Meanwhile, the rest of the industry is unable to resupply the deficiency, because oil pipelines into the Midwest are already operating at maximum capacity, he said." "ALREADY operating at MAXIMUM capacity" Is that so, thats the reason or in this case the EXCUSE as to why prices aren't falling at the pump, it seems to me this entire industry is walking on a tight rope or should I say a tight THREAD, meaning that such little commotion in such a large industry can create these gigantic headwinds?? it doesn't add up, if this industry is on such an edge that these little problems can cause such an up roar in pricing the bigger problem we have is the infrastructure and the way the system handles these problems, something isnt adding up, and I think its the lies and excuses thats really causing prices to remain high.... Despite the supply glut that has sent oil prices tumbling, prices at the pump are on the rise. Crude oil fell about 1 percent on Monday, trading near six-year lows. However, the national gasoline price average has increased to $2.67 from $2.59 one week ago, according to AAA's Fuel Gauge Report. Andy Lipow of Lipow Oil Associates said the rise in gas prices is driven by California and the greater Chicago area, where major oil refineries are having trouble processing crude oil into gasoline for the consumer. BP recently shut down its largest crude-oil processing unit in the Midwest after heavy damage from a malfunction. Lipow said California gas prices are still feeling the blows from an explosion in February at an Exxon Mobil refinery in the Los Angeles area. "It's those two regions that have brought up the national average. We actually have more than adequate supplies as refiners are operating at historically high levels," Lipow said. Meanwhile, the rest of the industry is unable to resupply the deficiency, because oil pipelines into the Midwest are already operating at maximum capacity, he said. Read MoreOuch! Gasoline prices are spiking in these states However, Lipow said gas prices will continue their fall after a couple months, as oil companies attempt to get refineries running again and demand from the summer driving season starts to wind down. "It's been my experience that eventually these problems are resolved and supply will return to the market," he said. "I expect that the national retail gas average price will decline by 35 to 40 cents per gallon by the end of the year." Taking a technical tack, Katie Stockton of BTIG said gasoline has stayed above key support levels, while crude has continuously broken down to new lows. She said this could be a sign of an approaching relief rally for both gas and oil. "I actually think gasoline might be telling us something, because it remains above those lows and [crude oil] is so incredibly oversold and showing downside of momentum exhaustion," Stockton said Friday on CNBC's "Trading Nation." Read MoreThis strange event could send crude oil soaring The disparity between crude oil and refined products like gasoline is good for companies that take the former and convert it into the latter. That's one reason why refiners Valero and Tesoro are each up nearly 40 percent this year. Among the bigger oil names, one stock that could come out on top is Exxon Mobil, according to Erin Gibbs, equity chief investment officer of S&P Capital IQ. The energy company has seen its shares fall 15 percent this year, but has seen growth in its its "downstream" business, which includes refining and selling oil products. "One of the companies that I looked at that gets 10 percent of its net profits from downstream or refined gas is Exxon Mobil, and I like this actually, because it's really oversold right now," Gibbs said Friday.
Big Oil companies screwing us again, living in West Texas, gasoline in futures is 1.48 and add state taxes it be 1.90 and yet I have to pay $2.45 wtf !!!
Here we go again. The cost of crude only makes up 50% of the price of gasoline. Complain to your local Senators, not the oil companies.
Not trying to start an argument here...but compare crude prices at the lows in 2008 and currently...I'd venture to guess that retail gas prices were roughly $1.00/per gallon cheaper in many locales...Granted local/state taxes complicate matters significantly (e.g. I see that gas in Dallas, TX is currently around $2.25 range), while in the Midwest around $3.50+ (refinery issues)...
There is a huge disparity in locations. When oil was at $150 and gasoline prices in Chicago and CA were close to 5.50, most prices in TX never made it over 3.00. You cannot track the price of oil and gas. Logistics costs are twice as volatile as crude prices. It's like these idiots who bitch that nat gas prices in the northeast during the polar vertex traded up to $120 a BTU while Henry Hub futures were at $6.50 and crying foul. These people obviously have never had to pay for space on a pipeline before.
West Texas is not like the rest of the state of Texas, gas back then was 3.60 even though there is a refinery here. Too many still go across the border for the really bad dirty gasoline Mexico has. Everything here costs more, electric, food except housing, but with 35,000 troops in Fort Bliss, not many empty rental houses and huge Section 8 housing as over 90% of population here qualifies for food assistance. So all of this keeps gasoline prices up unless Crude Oil is plunging. I doubt writing to Senators will help at all in Illinois, they wake up first thing in morning thinking how to make a new tax, best to move to one of the few no income tax states left. I grew up in "old man" regime of Mayor Daley grease one palm if you want to do business with the city.