Nothing has become more commercially important to us that the price of crude oil. Rising crude oil prices always cause our daily budgets to be disruptive. The first to be reached is the cost of running our cars (which means skipping the long, favorite drives of much of the weekend), then resting everything. Fruits and vegetables, daily grocery stores and air travel, almost everything except income. Interesting because of this steep rise in prices, our real income is actually decreasing because we are able to buy commodities just as much as the price. This is the effect of crude oil prices on our daily lives. To change this time around Crude Oil prices are looking to stabilize below the $ 100 level but there are reversal phenomena, although Crude Oil (which is the primary fuel for vehicle operation and a direct derivative of Crude Oil prices) is still moving up. Let's examine this factor in more detail.
You do not have to be a math genius to establish a positive relationship between global crude oil prices and gasoline prices. The movement of global crude prices is rising and so are the prices of gasoline. But this time something strange happens, when consumers are happy to see crude oil prices fall and expect to follow gasoline, this has not really happened. On the other hand, it appears that it continues to climb. Why is this happening?
No, God's desire is not to deprive you of a long weekend trip or make your life more miserable, and the answer to this lies in the current economic conditions surrounding the supply of crude oil and gasoline. Refineries do not produce enough gasoline due to two main reasons:
Raw stocks are not enoughNot so long ago, the price of Crude Oil was in a rage of $ 130 a barrel and was expected to cool a lot. Many refineries and other commercial and non-commercial establishments have postponed imports, believing that crude oil prices will fall and may be in decline if you decide to buy at higher levels. This resulted in a shortage of crude in refineries (which further refined it into gasoline).
Many refineries went in shutdown: Many of the refineries were closed even if they had sufficient stocks due to maintenance or flooding on the west coast, which further aggravated the supply conditions.
There is not enough gasoline to meet current demand and is the main reason for the high prices of gasoline despite the drop in global crude prices. We should get past the unique situation soon and see gasoline soon after the direction of the crude oil.