Crude Oil Prices Are Down, Will Gas Prices Follow?

FORT LAUDERDALE (CBS4) – When oil prices go up, gas prices follow.

So, shouldn’t the opposite also be true?

Maybe not.

Thursday, crude oil closed at 99.80 a barrel, under 100 dollars for the first time since March.

Regular gas averages $3.99 a gallon.

Back on March 16, when oil was $98.95 a barrel of gas was only $3.55.

Drivers say it’s hard to see a glimmer of hope but experts believe the falling price of oil might eventually lead to a drop in steep gas prices.

“If the downward trend continues and if we get 2 consecutive weeks where we see the price of crude oil right at or below 100 dollars, then we could start to see a reduction in gasoline prices,” said Jessica Brady, AAA Spokesperson.

Tyler Schaefer hopes so. On Thursday night, he paid 63 dollars to fill up his car. But he’s skeptical about a price drop anytime soon.

“Every aspect of life is getting more expensive so for gas prices to go up it doesn’t seem that unreasonable but it is kinda painful,” Schaefer said.

Brady says it takes at least 3 days for a drop in oil prices to reach the pump and with all the turmoil in the oil market, that drop might not happen at all.

“I don’t want to get my hopes up too much that we’re seeing oil trade at 99 dollars a barrel because we could see tomorrow or Monday the price of oil go right back up,” Brady said.

Drivers feel powerless. They see the bottom line and know the rules of supply and demand. They believe if the price of crude oil goes down, gas prices should follow.

“Yeah, I think it should be reflected in the price,” said Ivy Jordan. “Do I think there’s anything I can do? No.”

AAA says one of the reasons gas prices are higher today than several months ago is speculation over lots of things — like the turmoil in the Middle East, the U.S. economy and the strength of the dollar.

Experts say if oil prices continue dropping for a week or two then we should see these numbers come down. At least until the summer driving season revs into high gear.

More from Carey Codd
  • Phil Landers

    Up 4.17 cents on the Nekkei at 11:30 pm EST. I told you today was a good day Dave ;-/

    • Phil Landers

      FYI that’s a wholesale gallon of regular gasoline for the lay people.

  • Jimbo99

    They drove it up and it’s going to take whatever time it does to get thru that inventory to the cheaper price. Sad part is when you alter your driving habits, even have more layoffs people don’t consume and prices are artificially inflated to keep gross revenues to support profits. That is if John was using 21 gallons a week to go to work, he gets released from his job, he no longer uses 21 gallons a week, so everyone that continues to drive has to be charged more, even though supply is higher 21 gallons and demand is lower 21 gallons. Watch the Zeitgeist Movement movies on You Tube, you’ll understand just how messed up the consumption & monetary based model is, the alternative is a resource & non-monetary based model. Both have their flaws, the Venus Project is also an interesting concept to life on earth. The world is moving towards a hybrid of both. And that is not sustainable. Zeitgeist & Venus suffer for it, because the two systems are counter to each other.

  • mimi

    mumbo jumbo jimbo!!!!!!!!!!!!!!!

  • Justme

    Just amazing that as soon as the oil prices rise they are right out there with there suction cups raising the price of gas but when it drops somehow they forget to change the price. The explanation is that the gas that is already in the tanks was boght at the higher price. Huh??? Isn’t that the same thing in reverse? It is all propaganda.

  • bob

    It’s called the Law of Bending Over and Taking it. Our current civilization is built around oil, therefore the ones who have it charge whatever they feel like.

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