Originally Posted by Donger
Crude oil is $10 less expensive per barrel than it was when gasoline was last at $3 per gallon. That means that gasoline shouldn't be near $3 per gallon now, right?
Refineries are operating at ~88% capacity right now. The last time gasoline was near $3/gallon, they were operating at near 100% In other words, the present high price of gasoline has more to do with refining capacity (or lack thereof) than it does with the price of crude.
Refineries here, or refineries worldwide?
See, I'm not sure what all is the reason gas has risen so sharply. First, it was the whole Iraq ordeal. Then, it was the hurricanes. Then, it was China and Indonesia and their consumption rates. Then, it was the threat of Iran doing something stupid. Now, OUR refineries aren't being used at full capacity. I count two of those five reasons being domestic problems.
I call bullshit. Have they given a plausible reason as to why our refineries are operating at a reduced capacity?