Donger on Suicide Watch: Oil Nears $100 a Barrel

[Iowanian]

This makes sense.....but it also solidifies my anger that when the gulf storm farts...the gas, already in those tanks goes up that night.....

Originally Posted by Donger

Because retail prices drop more slowly than they increase. Think of it this way:

When gasoline prices are dropping in response to crude dropping, the retailer is still selling gasoline that he bought when crude was higher. So, in order to not lose too much money on the inventory he has in his tanks, he drops his prices as slowly as possible.

Make sense?