Tension in Syria, talks with Iran, or some other completely non-related event. These have to be the reasons that gasoline prices are dropping, right? Just because they are happening at the same time doesn't mean it is the reason that we are seeing cheap gas at home. Instead, let's look at three themes that shape the fundamentals of today's gasoline market that are sending the price to its lowest level in almost three years.
One reason for falling gas prices is that refiners like Phillips 66 (NYSE:PSX) and Valero (NYSE:VLO) don't have the ability to export as much petroleum products as they would like, and the excess has to go into the domestic market. Tune into the video below to find out how this situation has come about and whether we can expect the current market conditions to hold through our holiday travels.