Oil is 60.00 a barrel ,why is gas not reflecting this price drop?

feel we americans are being raped by someone. Oil prices are so low right now but gas prices are not reflecting this price at all. Gas should be around 2.10 a gal. with the cost of crude at 60.00 a barrell. What is going on. Anyone have an idea?????


Oil is 60.00 a barrel ,why is gas not reflecting this price drop?
The drop in the price of oil is not the only cost of gasoline. If the price of oil was 50% of the cost of gas, if the cost of oil was cut in half, the cost of gasoline isn't going to be cut in half. Some money will always be spent for manufacturing, individual gas stations, etc.Oil is 60.00 a barrel ,why is gas not reflecting this price drop?
I would say that in many areas it is. I saw gas for $2.38 on my way to work this morning. But to answer your question in a technical sense...when you say oil is $60.00 a barrel, that is called a commodities future. That means that they are speculating that the cost of oil will be that much at a certain future date. Right now that figure belongs to a barrel of Brent crude for the month of December. The price you see now is a speculation of a future cost. Also, I wouldn't exactly say that oil prices are so low right now. $60 a barrel is still a ridiculous price considering it cost about $3 a barrel from the ground to your gas tank.
Often the price that the newspapers quote is a price on a futures contract for oil, not the cash price. Futures prices are more speculative and volatile. Gas at the pump is moving down and will go down further. Also remember that the cost of refining must be factored into the price at the pump. Nothing is simple anymore.
The price of the barrel is not the only thing that determines price, you have to remember processing costs money too.





But let's be honest. The gas companies are making more money in the recent months than they ever have before. They are gouging us.
Greed (n) -- excessive desire to acquire or possess more (especially more material wealth) than one needs or deserves






It always falls a lot slower than the price of oil but rises in step. I think it's price gouging.