{"id":10348,"date":"2015-07-24T07:10:41","date_gmt":"2015-07-24T12:10:41","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10348"},"modified":"2015-07-24T07:10:41","modified_gmt":"2015-07-24T12:10:41","slug":"oil-prices-are-down-gasoline-prices-are-not-what-gives","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10348","title":{"rendered":"Oil prices are down, gasoline prices are not. What gives?"},"content":{"rendered":"<div class=\"story-headline\">\n<h3 class=\"story-title\"><a href=\"http:\/\/www.cbc.ca\/news\/business\/oil-prices-are-down-gasoline-prices-are-not-what-gives-1.3163008\" target=\"_blank\">Oil prices are down, gasoline prices are not. What gives?<\/a><\/h3>\n<\/div>\n<p class=\"story-deck\"><strong>It&#8217;s a good summer to be selling gasoline, not a great one to be buying it<\/strong><\/p>\n<p>In mid-February, the price of oil hovered around $50 US a barrel, and a litre of gasoline cost, on average,\u00a0<a href=\"http:\/\/www.kentgroupltd.com\/WPPS\/WPPS%202015\/WPPS_Report2%20Feb%2010.htm\">$1.01<\/a>\u00a0Cdn.<\/p>\n<p>This week, the price of oil is hovering around $50 a barrel and the average price of a litre of gasoline is\u00a0<a href=\"http:\/\/www.kentgroupltd.com\/wp-content\/uploads\/2014\/06\/WPPS_Public.htm\">$1.22<\/a>. A few small things have changed over that five-month period:\u00a0the Canadian dollar is lower by about three cents; Alberta has added a four\u00a0cent tax to gasoline bought in that province.<\/p>\n<p>But the big difference is that refineries are making a killing this summer.<\/p>\n<ul>\n<li><strong><a href=\"http:\/\/cbc.ca\/1.2955763\">Gas prices: Unravelling the mystery of what you pay at the pump<\/a><\/strong><\/li>\n<\/ul>\n<p>Refining margins are\u00a0the difference between the cost of crude oil and the cost of wholesale gasoline.<\/p>\n<blockquote class=\"pullquote\"><p><span class=\"pullquote-quotation\">&#8216;We&#8217;re at that part of the summer where demand for gasoline\u00a0is never going to be stronger.&#8217;\u00a0<\/span><cite class=\"pullquote-source\">&#8211; Stephen Schork,\u00a0Schork\u00a0Report<\/cite><\/p><\/blockquote>\n<p>Both Canadian and U.S. refining margins are running at seven- and eight -year highs. In Canada last month, the refining margin was\u00a0<a href=\"http:\/\/www.kentgroupltd.com\/wp-content\/uploads\/2014\/06\/June_2015_Eng.pdf\">27.7 cents per litre<\/a>\u00a0according to data compiled by Michael Ervin of the Kent Group.<\/p>\n<p>&#8220;We&#8217;re at that part of the summer where demand for gasoline\u00a0is never going to be stronger,&#8221; said Stephen Schork, editor of the Schork\u00a0Report, which is focused on commodities.<\/p>\n<p>&#8220;We&#8217;re at the height of the northern-hemisphere peak-demand season.&#8221;<\/p>\n<h2>Demand for gasoline is high<\/h2>\n<p>Demand for gasoline is indeed very high this summer. According to the U.S.\u00a0Energy Information Administration, gasoline demand is nearly seven\u00a0per cent higher than it was a year ago. That&#8217;s a significant increase.<\/p>\n<p>Refiners are going full steam right now, at over 90 per cent capacity, in order to keep up with demand.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil prices are down, gasoline prices are not. What gives? It&#8217;s a good summer to be selling gasoline, not a great one to be buying it In mid-February, the price of oil hovered around $50 US a barrel, and a litre of gasoline cost, on average,\u00a0$1.01\u00a0Cdn. This week, the price of oil is hovering around [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[3544,3000,328,7510,1331,5003,1423,588,592,7509],"class_list":["post-10348","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-cbc","tag-cbc-news","tag-fossil-fuels","tag-gas-demand","tag-gas-production","tag-gas-supply","tag-gasoline-price","tag-oil","tag-oil-price","tag-refineries"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10348"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10348\/revisions"}],"predecessor-version":[{"id":10349,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10348\/revisions\/10349"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}