Why Are Gas Prices Going Up When Demand Is Going Down?

The price of crude oil—and more importantly, gasoline—has climbed to painful levels once again. As of early April, the quote for Brent crude, the international yardstick, was about $126 per barrel—only some $16 below the $142 peak seen in the summer of 2008. But domestic West Texas Intermediate crude is only getting $107 per barrel—a full $38 below the 2008 peak. Meanwhile, we are told that U.S. oil production is up, gasoline demand is down, and we are even exporting gasoline to foreign countries. So why is the price of gasoline, at an average of $3.84 per gallon for regular, according to the U.S. Energy Information Administration, within five percent of the 2008 peak when domestic crude is fully 26 percent lower? (more…) from Car and Driver Blog http://blog.caranddriver.com

puts the internet to work for you. via task 647533