I know these two commodities don't trade completely correlated, but I've seen oil go over $78, and gasoline in my area has done nothing but fall the past few months. We're at about $2.55 here in DFW, TX. What's up with this?
2007-08-04 03:02:04 · 5 answers · asked by nazenail 2 in Business & Finance ➔ Investing
gasoline was way up in the past few months because of refinery problems and the difficulty or impossibility of importing more gas.
now that refinery problems seem to be over, the relationship is returning to its historical average ratio.
:-)
2007-08-04 03:06:33 · answer #1 · answered by Spock (rhp) 7 · 2⤊ 0⤋
European refineries produce gasoline in excess and export it more and more to the USA, where it is in demand, with a downward effect on prices.
In Europe gasoline is less and less used comparatively with gas-oil, as diesel cars are more and more popular (now well over 50% of new car sales) as being more fuel efficient and more robust.
Detroit should think about it ;-)
2007-08-04 11:40:22 · answer #2 · answered by pgreen 6 · 0⤊ 0⤋
As you stated, the price of oil and gas don't correlate well. Especially on a daily basis. The gas you are buying now isn't being produced from the oil that is pumped at this time. The price of oil is up, but the gas you are buying was produced from cheaper oil.
2007-08-04 13:59:39 · answer #3 · answered by Mystery 6 · 0⤊ 0⤋
The State of Texas is near Mexico and if the Gasoline is too expensive then everybody living close to the border will drive to Mexico to fill their tanks.
2007-08-04 13:47:48 · answer #4 · answered by Anonymous · 0⤊ 1⤋
because Gasoline is already overvalued. All money are pocketed by Gasoline producers as extra profits
2007-08-04 10:10:14 · answer #5 · answered by Ed 3 · 1⤊ 0⤋