Why Are Gas Prices Increasing Despite Record Crude Production?

Why talk about exporting crude oil when gasoline prices continue to rise, despite record domestic crude oil production and declining gasoline consumption? This question is being asked all over the United States, and the typical answer given is crude oil is not priced regionally, but on a global level.

Sure, global pricing is currently buoying the price of domestically produced crude, but that's only part of the story. Europe's thirst for diesel and the unrestricted exports of refined products are allowing 400,000 barrels of gasoline to be shipped from the United States every day. For a detailed look into gasoline prices, click on the following video. 

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 01, 2014, at 12:01 AM, skipgainer61 wrote:

    The price of gas just like everything else you buy is being controlled by politicians and we all know the democrats hate the fossil fuel industry, so in a polite way of saying it you are being screwed my friends.

  • Report this Comment On June 01, 2014, at 9:00 AM, brock2118 wrote:

    Here we have a fossil fuel which is highly variable in price.

    In the meantime, coal, a highly UNIONIZED fuel industry which just happens to be cheap and rarely varies in price is being run into the ground by the Party of the Little Man.

  • Report this Comment On June 01, 2014, at 9:55 AM, rhodsruner wrote:

    No unfortunately the price of gas is still controlled by commodity speculators on wall street, and yes I'm republican.

  • Report this Comment On June 01, 2014, at 3:47 PM, kennyhobo wrote:

    There is a simple answer: Obama. Obama has his legacy as a corrupt incompetent who covers his misdeeds with media supported lies. But it will get worse when the world realizes that Obama's attack on coal is really genocide on Africans who won't be able to develop their countries with cheap energy. Obama will look like Hitler Squared in world history. I can't wait to the GOP starts attacking Obama with felony charges in front of the Hague.

  • Report this Comment On June 01, 2014, at 8:21 PM, houseape wrote:

    People like Kennyhobo are the reason the GOP is in shambles. rhodsruner, a GOPer himself, spelled it out pretty well. The dems may enjoy taxing fossil fuels, but the recent uptick in price is not connected to that. It's called "market forces." In the old days, people like rhodsruner ruled the GOP and it was a viable party full of smart people. Now, the inbred Kennyhobos have taken over the party and it is doomed. I only hope that a replacement party, or the new old GOP, returns soon. Allowing any party to have free reign is a disaster.

  • Report this Comment On June 01, 2014, at 9:45 PM, choochoowilly wrote:

    If the politicians really cared about growing the economy, they would do something about these high fuel prices. Their portfolios are full of oil company stock and their campaign contributions come from big oil. I have noticed with great dismay that the radio stations no longer broad cast the oil profits, which are somewhere near $10 billion per quarter. And they still get tax breaks. If this was truly a free market economy, we would be paying about $2.00 per gallon instead of $4.00 here in Chicago. It's time for term limits and our congress to whats right for their constituents and not what will line their pockets deeper than what they already are. ENOUGH IS ENOUGH!!!

  • Report this Comment On June 02, 2014, at 3:19 PM, luckyagain wrote:

    Since 400,000 barrels of gasoline is being exported, it must be more valuable overseas than in the US. So expect to pay whatever the market will bear. As for speculators driving up the price, they can only have a short term affect. The last thing that a speculator wants to do is to take delivery of any commodity.

    The only real affect upon the price of gasoline is demand. The best way to cut demand is EV and hybrid cars. So even if you do not drive an EV or hybrid, it benefits you be lowering gasoline demand. Econ 101.

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