Pump Price B sticky on the way down.
Excellent point. Also, gas is down some 40% while oil is down some 60%. That's not out of line for the underlying commodity and the retail purchase finished product at all.
Capacity is up about 10% over the last 30 years around 18 million bbl/day.
“the newest major one was completed in 1977”
Banana. Republic.
Back in Howard Hughes day, there was a guy who was running around the country building refineries. Hughes kept buying him out, but he’d just go build another one.
We need some guys like that. And the Feds need to streamline the process for approval. Or designate some lands which are preapproved for refineries.
Back in Howard Hughes day, there was a guy who was running around the country building refineries. Hughes kept buying him out, but he’d just go build another one.
We need some guys like that. And the Feds need to streamline the process for approval. Or designate some lands which are preapproved for refineries.
Supply of oil is high, refinery capacity is not.
The problem is simple: all those “boutique” gasoline blends. That means you can’t easily transfer refined gasoline to anywhere in the country, which drives up the price of gasoline at the wholesale/retail level.
My car burns 93 obtain. The price difference between that and 89 octane has almost doubled as well.
Hit the "Show Crude Oil Price" button for comparison.
More proof that Congress is STUPID when it comes to economics. Do they think that oil magically refines itself? I remember all the nonsense and demagoguing when Bush had building more refineries as part of his energy policy and it got pulled. As ye sow, so shall ye reap.
How is propane? I just got a a quote of $1.99 / gal.
What keeps the gas prices high is called “price fixing.”
Gasoline is following oil down hereabouts right nicely. Some stations, the ones right along main routs of rush hour travel keep their prices between an exorbitant $2.35 and $2.43 but you just go over a block and get $2.20. That was yesterday.
Would FR’s resident oilman care to chime in for this question please?
(I know I’d be interested in his answer; I’ve been wondering the same thing)
I just got back from DR. Appt.
Drove past stations that had Regular Unleaded from $2.18 - $2.26 on the west side of the lake.
Get back on east side going home and Sam’s was $2.32, others are $2.46 or so.
Liberal states also add their own refining demands which explain why their gas prices are higher. Also, don’t forget how much you are paying in gasoline taxes for that gallon at the pump. The taxes don’t go away just because the price of the commodity goes down.
Using the data available at the St. Louis Fed website it works out to about a 20-day lag between a barrel dropping and a gallon dropping at the pump.
Conversely, it’s a 20 microsecond delay between the increase in price of a barrel and a 10-20 cent rise at the pump.
Go figure.