I noticed gas prices at my local Costco went up 30 cents in a few weeks yet crude oil prices are relative steady, closing at about $46 yesterday. Gas comes from crude so why the jump in prices at the pump if crude is still low? People will talk about supply/demand issues but this would be reflected in crude prices..no? Sorry if I'm missing something that's obvious to everyone else.

 

 

Its a good point...

Prices are climbing here in canada as well.

 

I'm not complaining. At the spike, I paid $4.99 for premium. Now? $2.30 is the most I paid in MONTHS. Be happy with what you've got

 

Right.

There was a time when $1.79 was the norm. Then the prices spiked and now have dropped and will probably settle in the $2.50 range.

But everyone will be thrilled "because it's less than $4.00"...gas is so cheap now!

 

Its very simple the refineries have cut back on gas production due to the fact that when gas was in over supply they could not make any $s. Reduce production and even if demand remains constant the price will rise. That is what is happening now.

 

and obama announced he won't be drilling anytime soon, further cutting the supply

 

It all has to do with the "crack spread"

http://en.wikipedia.org/wiki/Crack_spread

 

I was reading a report a week or so ago that said we are fast running out of storage for crude oil in the US. because our consumption is down so much that has caused the refineries to cut production.

 

I noticed that my cereal box contained smaller portion last year when the gas price hit $4.00. Now that the gas price is lower, are these sons of biotches gonna give me the proper portion?