Those in the Oil Industry....

[hollywood]

Can you provide an explanation as to why prices at the pump have jumped some 25 cents in the last two weeks?

I filled my car up at $1.50 and today the same 7-11 is selling it at $1.75. (All the while crude prices have actually continued to remain low or even fall from when prices were at their lowest level.)

Has there been some kind of intervening situation that I am unaware? Like: has a refinery or two gone off-line, is there some kind of blockage in the supply change, anything that is causing costs in the industry to go up? Anything specific to the OKC area or Oklahoma in general?

I don't get it, from everything I've read with the glut of supply in the domestic and international market, shouldn't the law of supply and demand be putting pressure on the market to have kept the prices near the lows from a few weeks back?

I'm being serious here and not trying to make a point, I figure that there must be something that happened that caused prices to jump like that and I am simply unaware of them. Otherwise, this increase in price isn't making any sense whatsoever.

 

[purkey]

have heard some refinery's are switching over to a different blend for the summer so they are shutting down or at least partially shutting down. Also heard that gasoline prices have hit bottom.

 

[poke2001]

Gasoline inventories have dropped, and have actually ticked up a bit in commodity price. WTI is actually up just a bit off the low, but not much.

I'd say for the mist part, it has to do with demand of gasoline going up drawing inventories down. There is such a huge surplus of oil right now, it will take a while for gas demand to draw down oil supplies. Refineries are running at about the same capacities as 6 months ago...this drop was a supply side, not demand side issue.
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