Why isn’t the price of gasoline even higher?

In the last year, the price of gasoline has risen by 38%. The prices of other fuels have risen much more–diesel has risen by 64% and jet fuel has risen by 91%, and the price of West Texas Intermediate (WTI) crude oil has risen by 100%. Why aren’t gasoline prices rising more than they are? Some will recognize this as the “crack spread” issue.

In this post, I divide my observations into four sections:
1. General observations and background
2. Changes in world product demand and recent US consumption
3. Who are the market players, and why this matters
4. What might be ahead?

The Oil Drum