Oil prices are soaring; why are gas prices falling?

Big inventory build-up this spring is helping lower pump prices

Despite the recent surge in crude oil prices, gasoline is once again selling for less than $2 a gallon in many parts of the U.S.
By John W. Schoen
Senior Producer
MSNBC
Updated: 12:24 p.m. ET Aug. 17, 2004

Drivers at the pump fumed this spring as gasoline prices soared much faster than crude oil prices. Now, with oil prices hovering at near record levels — approaching $50 a barrel — gasoline prices are easing. What gives?

First off, U.S. gasoline refiners have been operating at near-record levels — nearly 94 percent of capacity — in recent months, so gasoline stockpiles have easily accomodated the demand.