Am I missing something here? Way back in November and December of 2014 when the price of oil dropped from $110 a barrel down to $50 a barrel, we saw the price at the pump drop to the $1.75 range. Oil kept dropping to the $25 range but we weren’t seeing that reflect at the pump and we were actually paying even more that when oil was at the $25 lows.
When oil was about $110 a barrel we were paying about $3.79 a gallon for gas. When oil dropped in price to the $50 range, the price of gasoline dropped too. When oil kept dropping past the $25 mark, we didn’t see the price of gasoline follow suit. Now oil is still under $50 a barrel and the price of gasoline is climbing and is pushing through the $2.50 mark. At this rate we are looking at over $5 a gallon at the pump and could climb higher.
This at a time when all the oil storage in the United States and abroad are overflowing from the abundance of oil. The big oil companies are complaining that their profits are down but they don’t say much about the record profits on gasoline sales that are making up for the losses from other parts of big oil. It was said that after Memorial Day there should be some easing of prices at the pumps when the exact opposite is happening.
Isn’t anyone wondering why? I sure do.
John Bauer, New Baden