The price of oil doesn't hasn't change much in the past 2 months but the price at the pump is up 50 cents. How does that make sense? It's not like it costs more to refine it.Why are gas prices going up when the price of a barrel of oil isn%26039;t?
First of all, let me say that the current price of gasoline, and oil, for that matter, does not reflect the current demand. The increases in prices are due largely, if not completely, to direct intervention by entities that can influence the prices.
The demand for oil is very low in comparison to the current supply. OPEC has, in order to increase their profits, cut back on production in order to thin the world's supply of oil. The demand for oil in comparison to the supply is slightly higher only because the supply is smaller than before.
A similar thing is being done by refineries. Refineries are scaling back production of gasoline so that they can make a profit. The demand for gasoline is still quite low. However, the supply of gasoline is getting smaller, which causes price to increase.
In other words, the prices for oil and gas are being influenced by controlling the supply. The demand is not increasing. The prices do not reflect the current economic condition.Why are gas prices going up when the price of a barrel of oil isn%26039;t?
supply and demandWhy are gas prices going up when the price of a barrel of oil isn%26039;t?
why do people ask the same exact question when you can just search for questions, its supply and demand, and to make it worse, now the oil companies know we'll still pay over $4 a gallonWhy are gas prices going up when the price of a barrel of oil isn%26039;t?
okay... so the people that buy oil will buy it straight from foreign countries and then sell it to your local gas stations. when the price per barrel from the foreign countries went down, a lot of people bought it hoping it would bring a good profit. however, when they went to sell it to the gas stations they couldnt sell it because everyone was trying to sell it to the gas station so each seller had to lower their price so the gas station would buy theirs (sorry that was a little wordy). but now, people have sold all their oil and the sellers are raising their prices again because the gas stations must buy it to stay in business. so the price of oil never changed but it is the change of supply that causes the change in price.
