Can gasoline prices rise even if the price of oil falls?
Yes they can. Refiners watch gasoline demand numbers carefully. If they make too much gasoline, they are not going to turn a profit. Not a good business model if you want to stay around long. Q: So will gasoline rise to $4 a gallon again? A: Probably not anytime soon. The market has a huge surplus of cheap oil, and that should continue to weigh down gas prices somewhat, compared with last year. The Energy Information Administration said last week that crude supplies swelled to 351.3 million barrels, enough to fuel 15 million cars for a year. It’s also nearly 16 percent higher than year-ago levels. Even if demand jumps suddenly, gas prices could fall back below $2 a gallon later this summer, prices not seen in some time during the driving season, Flynn said. “If we have hurricanes this summer, that could change things,” he said. “But I think we’re definitely going to see the lowest prices we’ve seen in five years.” Q: Were prices at the pump last summer a fluke? A: Actually, most expert
