Why is price per barrel going up and yet gas has dropped more than 25 cents?

Question

I live in Maine

Answer 1

Because they are 2 different things. The first one sounds like you are talking about the price of crude oil. Crude can be turned into many products, including gasoline used in vehicles. But gas would have several factors that determine it's price, and price of oil is only one of these factors. Gas generally has a seasonally high demand during the summer when we all go on road trips, weekend getaways and other vacations. So gas prices tend to rise at the beginning of summer and fall at the end of summer. As once they turn oil into gas, they don't want to store it long term, plus winter gas they market slightly different additives anyway, they may find their supply of gas right now as summer ends is too high. They will want to sell it off. Meanwhile, crude oil is switching over to being refined into things like heating oil for the winter, and the production of that will depend on how stormy and cold winter is predicted to be.