If prices of oil are falling to multi-yr lows, why are we still paying North of $1.70/gallon of gas?

This has little to do with the availability of the US Dollar (USD) in international markets since gas is based on the USD exchange rate. As the dollar gets weaker, the price of oil will 'rise' based on the value of the dollar.





While the dollar has been flooding the markets fo the world, other nations have gone through similar measures as the US has, of late. therefore, the market is being flooded with other currencies as well so the inflationary effects are limited because of this.





Think of it as having 10 marbles in a bowl of unique colors. You can add as many marbles as you want to the bowl in the same ratio as the initial 10 and the ratio will remain the same in a global market. The secret is to find a way to revive your economy first and begin extracting your own colored marbles first to increase the demand for them. The country that does that first will find its economy strengthening the fastest.





So, if the dollar weakens on a given day (exchange rate drops), the price of oil will 'rise' even if the actual value of oil remains the same because it requires more USD to purchase a single barrel of oil. The converse is also true.





As this is the case, multiple factors are in play in the valuation of a barrel of oil and it is not as simple as ONLY oil rising or falling in value but also how the dollar is faring in current markets.





The reason gas prices are not falling along with the current value of oil is actually that refineries have limited their production even though crude oil is trading at a very low level. This is due to the oil companies seeing that their supplies can rise and yet maintain high prices.





In other words, this is the height of capitalism being exploited by the mega-corporations in the oil industries. Many people see it as the gas stations themselves taking the profits but there are regulations in place that limit how much the stations can charge over the price they pay for the gas itself.





Greed on behalf of the corporations, my friends. Greed.If prices of oil are falling to multi-yr lows, why are we still paying North of $1.70/gallon of gas?
Probably because the price of the other components have gone up. Like marketing, taxes, distribution, refinery costs, salaries. Also, these Oil companies probably got used to making gigantic profits over the past few years and now those profits must be way down because demand has dropped so much recently that they have been forced to raise the price of the finished product, Gasoline.If prices of oil are falling to multi-yr lows, why are we still paying North of $1.70/gallon of gas?
';The better for the major oil companies to continue making record profits like they have been doing for several quarters now, my dear!';
because our dollar isn't strong we flooded the market with our money so now its not as rare or valuable so it cost more to buy things that are not from america
Because Obama has stock in oil companies and wants to get it while he can.
You lucky person....


and here we are in the UK paying about 拢4.50 per gallon