In the United States, crude-oil prices have plummeted, but drivers aren’t feeling the impact at the pumps.
The U.S. benchmark oil price, which is determined by trading on the New York Mercantile Exchange, or Nymex, has tumbled by almost a third since April. That raised expectations for gasoline prices to drop just as quickly at the pump. They haven’t.
Despite the fact that U.S. drivers are using less gas and throughputs at U.S. refineries being higher, our fuel supplies are lower than in 2010 because more U.S. refineries are exporting refined products to other countries. As a result, gas prices are remaining high and the outlook for the remainder of 2011 and well into 2012 looks to be more of the same.
China and other emerging economies account for all the projected growth in oil consumption through 2012, the department said. As China’s industrial might continues to expand and the numbers of autos continues to grow, the country need for more and more oil products grows, with consumption in 2012 projected to jump 6 percent, to 10.6 million barrels a day.
The retail price of unleaded gasoline has fallen by just 13% since April yet a gallon of gas currently costs an average of $3.44 across America according to the AAA’s Daily Fuel Price report.