Oil Prices: If the price of a barrel of oil has fallen why haven't the prices fallen at the pump?

I know people will say that is because the oil at the pump cost a certain price, but if that were true why does the price at the pump go up almost daily when the price of oil rises. Also, another question we have been told that the prices rose because of supply and demand, but lo and behold it's speculation that made the prices go up. Now, wouldn't you like to know who was doing that speculating?





http://news.yahoo.com/s/ap/20080910/ap_o鈥?/a>Oil Prices: If the price of a barrel of oil has fallen why haven't the prices fallen at the pump?
Frank, I'm 65 years old. Never in my life have I seen anything that has gone UP, come down! I'm serious.





When I started driving, I could fill my tank up for $4.00. Now it's $60.00. Of course I don't expect it to go down to $4,I'm just making the comparison.





Keep this in mind too. Since gasoline has gone up, so have thousands of other things that depend on gasoline to transport them. Especially groceries. Will groceries go back down? They haven't yet! And I don't expect they will.Oil Prices: If the price of a barrel of oil has fallen why haven't the prices fallen at the pump?
The price of crude oil now is actually the price of crude oil *futures* 6 months from now; the price of gasoline on the commodities market is the price of gasoline *futures*. It takes about 6 months for oil to come from the well to be catalyzed into gasoline in the pump at the convenience store.





Also, there are winter and summer blends of gasoline; winter blends are cheaper and should be hitting the pumps within a month. This might make the price drop by 10 cents...15 if we are lucky.





Speculation does have a lot to do with it. Gasoline prices in my area jumped 15 cents the day *before* Gustav hit. After it did no major damage, the price dropped...5 cents. Remind me to be overjoyed, ok?