Saturday, May 26, 2012

Why are gas prices going down?


      As you may have noticed, gas prices have been slowly coming down. Normally, for the Memorial Day weekend and through the summer, gas prices go up due to increased demand and refineries switching over to summer gas. What we are seeing is more oil in the interior of the U.S. due to extra oil production through shale oil and gas production. There is enough production that the Seaway Pipeline flow was reversed. The Seaway pipeline runs from Cushing, OK to Houston, TX. Normally, it takes oil from Houston to refineries in Cushing, OK. Now, since there is actually a glut of oil in the interior of the U.S, the pipeline is taking oil from Cushing, OK to Houston. The extra oil is causing prices to slowly drop.


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