Gas prices rise but don’t always fall ‎

There is absolutely no reason why prices of crude oil and gasoline should be moving in opposite directions this much for this long. If anything, economic trends should be bringing these two prices closer together.

For one thing, supplies are plentiful. According to The Wall Street Journal, crude inventories have hit a record high at Cushing, Okla., where barrels traded on the Nymex are delivered.

The oil market is apparently counting on a robust recovery both here in the U.S. as well as globally to use up some of the surplus crude and fuel put in storage during the downturn, adds the WSJ. So far its hopes have not been fulfilled, hence the decline in crude.

The demand for oil and gas is clearly failing to live up to expectations.

While the nation’s factories have shown some signs of life lately, demand for oil for industrial purposes remains weak. Naturally, the need for diesel fuel, which is used mainly in trucks, is off as well.

MarketWatch