Why are gas prices still so high?
The US is recovering unprecedented amounts of oil through fracking and other collection procedures. That isn't translating to lower prices at the pump, however.
So why are gas prices still going up? The national average for a gallon of unleaded is $3.67, up from $3.61 a week ago and $3.58 a month ago, according to the AAA Fuel Gauge Report.
"Prices are very, very bubbly," said Tom Kloza, the chief oil analyst at GasBuddy.com, in this interview.
The Northeast is seeing high prices now because of refinery issues, Kloza added. And he thinks prices overall will continue to wobble a little bit higher.
Traders are betting a record $40 billion that prices will rise for crude oil, through futures and options contracts, Kloza said.
Gasoline futures shot higher earlier this month, partly as traders reacted to production glitches. Motiva Enterprises, for example, shut down some production at a refinery in Texas, while Phillips 66 (PSX) said a power outage stalled production in Oklahoma, The Wall Street Journal reported.
Still, Kloza said he doesn't think we'll hit the 2013 record for the price of a gallon of gas, which is $3.78. Prices are just too high already.
"These numbers are really really frothy," he added. He expects gas prices to come down after Labor Day and in the last 100 days of the year. Between now and Labor Day, it's a toss-up, particularly because late-summer hurricanes could impact oil prices.
It went up over 27 cents/gal the other day. Greedy bastards need more money but they will blame it on, the wind, to much sun, the ozone layer, hurricanes in egypt, flooding in Arizona and UFO's over
the Bermuda triangle....
Very simple, because they can get away with it. That's how every year they report a new "record profit."
In this world, unfortunately, it's every man for himself. There isn't a company out there that cares about anything (anyone) except for their bottom line.
We haven't built an Oil Refinery since the 70s.. At this point doesn't matter how much Oil we pump, there is no Place to refine into Gas or Diesel.. It would make way to much sense to Build a Refinery up in the Dakota's. Just ask any Tree hugger or Politician
gas prices go up because they can. simple monopoly, supply and demand issues.
while US is "flush" with more oil, it is NOT usa's oil. it's owned by the gas companies and they can charge market prices for their oil or gas.
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[BRIEFING.COM] The stock market finished the Tuesday session on the defensive after spending the entire day in a steady retreat. The S&P 500 (-0.6%) posted its third consecutive decline, while the small-cap Russell 2000 (-0.9%) slipped behind the broader market during afternoon action.
Equity indices were pressured from the start following some overnight developments that weighed on sentiment. The market tried to overcome the early weakness, but could not stage a sustained rebound, ... More
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Bill Stiritz owns more than 5% of the company, and has experienced an estimated $145 million in paper losses on his investment.
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