Why Does It Seem That Gas Prices Aren't Going Down Like The Price Of Oil?

[Dinger]

Or am I wrong? Gas here (northern Wi.) is $3.75 a gallon. It seems like I hear about oil prices going down, but I'm really not seeing it at the gas pump. Anybody else?

[whistle]

1. What are crude oil prices right now?

[whistle]

2. The answer is here...

Oil Dashboard
August, Thursday 21 2008 - 10:48:07
Crude Oil
$119.04
▲3.48 3.01%
10:48 AM EDT - 2008.08.21








Crude Oil Price by OIL-PRICE.NET ©
Price Change Trades Volume
10:48 - $ 119.04 3.48 3.01% 42,775 89,677
Range Open 52 Wk Range 1 Year Forecast
115.40 - 119.94 115.86 90.05 - 146.50 $154.75 / Barrel

<MORE>

http://www.oil-price.net/

[2KS2KHonda]

3. 120/bbl as of 3 minutes ago

;-)

[Ghost in the Machine]

4. I paid $3.39/gal yesterday here in East Tenn...

I've seen it from 3.39 to 3.44 since last saturday...

[Subdivisions]

5. Oil's up $8 since yesterday morning. Gas should follow soon. n/t

[global1]

6. Pump Price In Chicago Is Still Mostly Over $4.00....

it doesn't seem to go down at the same rate it goes up. They know that we're used to paying $4.00 now so even if the price of a barrel of oil goes down - they maintain the same price to gouge us just that much more.

[MicaelS]

7. Well you're wrong,

At least as far as N. Texas goes. Gas has been dropping steadily the last 4 weeks. In fact it dropped seven cents in just four days. I bought gas Sunday evening in Lake Worth, Texas, it was $3.41 a gallon, as of yesterday evening, the same station was down to $3.34 a gallon.

http://www.gasbuddy.com/ Put in your zip to find the lowest gas prices in your area. You can even post prices as you see them. Try zip code 76135

[ekelly]

8. $3.34 this morning, here in Southlake, TX n/t

[Warpy]

9. Most of the oil refined into gasoline is on long contracts

and that >$140/bbl price was for spot market futures, not contract prices.

Oil companies budget for a certain percentage of their total by spot market prices, just to cover shortfalls from tanker accidents, refinery accidents, and spills. Since the spot market futures are going down, they're lowering prices by the percentage of their total budget represented by the spot market price.

This is clear as mud, I know, but just realize that the contract prices were renegotiated not too long ago and reflect the declining value of the dollar, not any scarcity in the oil supply.

Don't expect to see gas prices under two bucks a gallon, in other words, not unless the dollar is strengthened.