Crude oil and gasoline prices

Price of oil falls - why are gas prices so high?


Stark contrast between prices of gas and crude oil
The prices of crude oil and gasoline typically rise in tandem, but as Mark Strassmann reports, recently the differences have been stark.


http://www.cbsnews.com/stories/2011/08/22/eveningnews/main20095705.shtml



(CBS News) ATLANTA - Oil has been falling recently - and gas prices, too. But not nearly as rapidly.

The price of oil closed Monday at about $84 a barrel. That's up nearly $2 from Friday. Gasoline is down two cents in the past week to a nationwide average of $3.58 a gallon.

AAA's Fuel Gauge Report
http://fuelgaugereport.aaa.com/

Often the price of crude oil and gasoline rise together. But gasoline usually lags behind crude as prices fall. The price of U.S.-produced crude oil has dropped 30% since May. But gas prices have only fallen 11%.

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"As gas prices rise, as increases happen, stores are more apt to maybe absorb some of those price increases during a rise," said AAA's Avery Ash. "Then, as prices fall, they may be inclined to lag a little to make up for some of these losses."

Another important factor is the higher price of imported oil. Half of the oil America now uses is the more expensive crude produced overseas.

It could be a while until there's relief. Gas prices should drop another 40 cents by Christmas.