Why is gasoline so cheap recently, but crude is still expensive?

[muscleman]

The gas station near my home has a sign of 3.27 per gallon. I remember earlier this year, it was 3.9.

Earlier this year, the crude was 96 per barrel. It is still roughly the same today.

 

What is the relationship between these two prices? That is weird...... ::)

[fareastwarriors]

sluggish US demand for gasoline; high demand for diesel abroad.

 

 

 

U.S. Becoming 'Refiner to the World' on Strong Diesel Demand

 

http://www.entrepreneur.com/article/227733#ixzz2jErV6WJl

[jschembs]

Here's another explanation (as with any Zero Hedge article, don't read the comments, they will make you dumber as a result):

 

http://www.zerohedge.com/news/2013-10-30/guest-post-us-1-oil-so-why-isn%E2%80%99t-gasoline-080-gallon

[bmichaud]

Muscleman,

 

What was the price of Brent, versus now, back when gas was 3.90 in your area? If Brent is now lower, that is likely part of it, as WTI is not a good barometer of gas prices because it is landlocked. Also, it's a seasonally weaker time for gas demand as the summer months wind down.