It ISN'T the cost of crude oil.

[KentuckyWoman]

June 2008 A barrel sold for $187 - US national average for gas was $4.71
Sept 2014 A barrel sold for $111 - US national average for gas was $3.61
April 2020 A barrel sold for $21 - US national average for gas was $1.95
June 2022 A barrel sold for $108 - US national average for gas is $5.01 (regular)

I keep hearing the blathering heads on TV claiming this is because Russia. Simple supply and demand. Well then why isn't crude up to $200 a barrel to justify the end result at the pump?

Seems to me at $108 a gallon the national average should be well under $4. Someone explain it to me like I'm an imbecile ... because I don't get it.

[LonePirate]

1. The price of oil is only one contributing factor to the price of gas.

The supply of oil, the refining cost of converting oil to gasoline, the refining capacity that impacts the supply of gasoline, the increased demand for gasoline during the summer for travel and lawn care tools as well as the separate gasoline future markets also contribute to the price of gasoline.

[KentuckyWoman]

7. All that I understand

There has historically been a connection between the price at the pump and all those factors. But there is a global disconnect right now that doesn't make mathematical sense to me. All the figuring, even when considering the gambling aspect of the gas futures market, I'm coming up with prices inflated at least 10% above the usual profit margin.

After doing all the math all I can come up with is "because they can". And yet stocks for big oil are down because the earnings in 2022 were disappointing to investors. Add in fears of a global recession coming due to all sorts of things. It looks to me like they are gouging the world as much as possible. Push up the price bubble so they can take the money and run when it all falls.

[Srkdqltr]

2. Because they can?? Greed? Grifting? Making some sort of point to someone??

[SheltieLover]

3. Billionaires who don't want to pay taxes

Pootin, whose largest export is said to be oil...tied up with qpukes.

It's a real mess & I'm sure there might be other reasons.

When will the world stop allowing 1 person (thus far, human males), destroy the world food supply, energy prices, etc? Sickening imo.

[TreasonousBastard]

4. I don't get it either. Crude has to refined and distributed...

so the price per bbl is often largely irrevelent. I do know that refinery space is down, so tankers full of crude wander around looking where to dump it.

If someone would actually break down pricing from field to gas station, it would be enlightening.

[bucolic_frolic]

5. Everything mentioned in the previous post plus consumer expectations and Oil Company greed

Any little shortage and everyone rushes to the store to buy all they can. We are a nation of hoarders. Gasoline too. Every car's tank is full, I see guys at the pumps with a pickup-bed full of 5 and 10 gallon containers. Hoarders.

And once the product is moving, gas suppliers aren't dumb. They pile on.

One the Fed slows things down, consumer expectations about scarcity and rising prices will impact consumer demand. We'll buy less, or a normal amount.

[Magoo48]

6. Yes, and supply is controlled by those mad with greed, and demand is controlled by populations

who generally refuse to be in inconvenienced. So, it’s Russia, and Biden, and whatever horseshit and gunsmoke is being served on the corporate censored MSM.

[jimfields33]

8. You forgot state taxes that have increased since 2008

Pennsylvania went up 50 cents a gallon. I’m sure every other states has gone up to.