Gas prices should be dropping, not rising
Last weekend, I noticed that the price of gasoline had gone up to $4.15. Looking at Saturday's Buffalo News Business section, it said that crude oil was down, year to date 6.7 percent, and gasoline was up 24.4 percent. I realize that there is no direct linear relationship between the two, but historically the price of gasoline would change approximately ¼ percent for every 1 percent change in the price of crude. If this were still true, then gasoline should be $3.29, not $4.15.
It's interesting because never has so much oil been produced or gasoline refined in the United States. Also, gasoline consumption in this country has been drastically cut back. There is no shortage of oil or refined gasoline. It seems that this new dynamic is due to the tremendous increase in the amount of gasoline and other oil-refined products that are now being exported from the United States.
I do believe in capitalism and realize some can pay more than $6 per gallon; but also feel that this new pricing dynamic has tremendously hurt the recovery from the Great Recession because it hurts the economy (and jobs) as we spend more on gasoline instead of other consumer products.
So, get used to $4 or $5 gasoline prices even as we produce more oil in the United States and export more gasoline. Ouch!