The Disconnect Between Crude Oil and Gasoline Prices
If you've been paying attention to crude and gasoline prices lately, you'll notice that some days, the two have been moving in opposite directions.
So, what gives? How is it possible that crude oil prices continue to hold steady while you're shelling out more at the pump? One word: refineries. Obviously, no one can fill up with raw crude oil, otherwise we'd be doing so gleefully as oil prices remain under $50/bbl, but unfortunately, that crude oil must be refined into something that is useful- whether it be gasoline, diesel, heating oil, jet fuel, kerosene, or even asphalt.
And therein lies the problem. As refineries have been set back by various incidents- extreme cold, fires, explosions, etc, they've collectively been through-putting slightly less crude oil. In addition, domestic production of crude oil remains healthy, and so do imports. We're awash in oil, and according to this AP story, running out of places to store it all. Obviously when you have so mu
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