Why Gas Prices Haven't Fallen YetThe smart money has been predicting for the past month that gas prices would fall. Oil prices have been below $90 a barrel since early August -- although it takes time for declining crude prices to work their way through refineries and to the pump -- and the International Energy Agency has cut its estimates for crude oil use for the rest of the year.

But despite those factors, gas prices are by most measures as high as they were a month ago. AAA, which tracks price averages across the country, says that a gallon of regular cost $3.588 Monday. Thirty days prior, a gallon cost $3.578. Both of those figures are well above $2.731 -- the price a year back.

Theories about why gas price should have fallen are simple. The U.S. economy is teetering on the edge of a double-dip recession. The summer driving season ended with Labor Day. In most parts of the country, the weather has not yet gotten cold enough to create demand for heating oil. These factors should be perfectly aligned to push gas prices lower.

But one key reason that gas prices haven't dropped is that refiners are currently shipping record amounts of refined petroleum products overseas to Europe and Asia. China continues to display a nearly insatiable demand for oil. If PMI and trade data are any indication, manufacturing and the demand for China's manufactured exports are continuing to expand, despite a slowing global economy. Eventually, the worldwide slackening may hit China's demand for raw materials, but it hasn't yet.

Another factor has to be political turmoil overseas. Much of the Middle East and Northern Africa are still in turmoil. The war in Libya is not quite over, though the Transitional National Council controls Tripoli and much of the country. In Yemen -- which borders petro-giant Saudi Arabia -- violence is rising, and at least 60 people have been killed since Sunday.

And, perhaps most important, OPEC has signaled it has no plans to increase oil production The cartel still accounts for nearly half of the world's oil production.

Between them, all these factors continue to keep demand high, and fuel the fears that supply could contract, perhaps suddenly. So don't expect any relief at the pump soon.

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Jim Horak

The blame is the blame; these comments on high gas prices, oil company’s huge profits and government issues are unfortunately bringing us no further towards the solution. I am sick of high gas prices and had to find my own personal solution for lower gas prices and discovered new a gas card program. After extensive research, I joined and now have eliminated my entire out pocket expenses for gas. It is easy and now with the money we have saved; our family can go on road trips, to movies and more fun stuff. Turn blame into action towards the solution or do nothing, it is up to you. http://gaspainrelief.free911gascard.com

September 22 2011 at 7:03 PM Report abuse rate up rate down Reply
johndson

The worst day in the history of the American consumer was the day the oil futures market was deregulated. The companies who already control the source, own the wells, own the pipelines, own the refineries, determine the flow, maipulate the supply, and own the delivery systems, ALSO TRADE THEIR OWN FUTURES CONTRACTS. This is a monoply on top of a monopoly, on top of a monopoly times 7. Big oil has been given a free pass to ignore every single anti-trust law ever written. Trading your own product, and thereby setting the (grossly inflated) price is the biggest and most profitable game on the planet. Any politician, and BOTH parties you name ARE ALL TO BLAME. Listen carefully to hear one single voice out there who is willing to take them on, and stop this outrageously greedy raping of the public. Can't hear anyone? Me neither -- All I hear are crickets.

September 21 2011 at 11:39 AM Report abuse rate up rate down Reply
1 reply to johndson's comment
janswizz

Ah yes the bubba system is alive and well.

September 21 2011 at 11:44 AM Report abuse +1 rate up rate down Reply
rigby054

Oil and Gas prices are going to stay high. This is where Obamas campaign money is comming from. The American public should be happy about that.

September 21 2011 at 11:36 AM Report abuse +2 rate up rate down Reply
janswizz

I wonder how far the Canadian / Texas oil pipeline would have come along if they gave the money to them instead of Solyndra.
Providing they get the approval from the government agencies dragging their feet on the final approval of course .

September 21 2011 at 9:49 AM Report abuse +2 rate up rate down Reply
bcopleyjigs

Another lame article. Gas prices are high because Wall St and big oil want them high. Nothing can or will be done by congress because thewy have all been bought by big oil.

September 21 2011 at 9:44 AM Report abuse +2 rate up rate down Reply
janswizz

I'll be willing to bet George Soros has a big "cat ate the canary" smile on his face knowing that Obama is allowing the further destruction of the American economy.
Since 1979 and the birth of the Dept. of Energy,Jimmy Carter's baby, the agency has been abusing 34 billion dollars a year to get us less dependent on foreign oil. I guess there is no sense in calling the Government waste hotline at this point.

September 21 2011 at 8:11 AM Report abuse +3 rate up rate down Reply
xkraften

one simple word blame obummer... watch gas prices drop for his attempt at re-election... hopefully america wont be dumb enough to vote for this idiot again.... he is actually worse then Bush... sad but true... Obummer will go down in history for being the first 1/2 black president and also the worst.

September 21 2011 at 7:58 AM Report abuse +3 rate up rate down Reply
grybrks134

That is so much Bullshit, quit sending the surplus over sea"s and let the economy get rolling , one reason it is in the crapper the price of transportation , which has to do with the cost of fuel , keep it here and lower the cost of food , transportation, growing the food IE tractors and harvesting equipment which run on FUEl , if they would do this maybe this over grown in greed country could start to get it"s leg"s under it and start some growth, electricity and many dailey needs depend on one kind of fuel or the other, Have a heart EXXON, MOBLE, FINA, SHELL

September 21 2011 at 7:39 AM Report abuse +3 rate up rate down Reply
1 reply to grybrks134's comment
maloontransllc

We in the trucking industry are still paying 3.95 for diesel we have to pass this on to the customer in which gets passed onto the consumer who drives the ecnomy. You would think that Obama could understand why the economy is sliding again but it just goes to show that he has no clue of what to do other than listen to Hary and Nancy that is in his ear telling him to raise taxes and beat up on small businesses and we are the ones that will pull us out of the recession that we are now in AGAIN. But he doesnt care as we are the enemy !!

September 21 2011 at 8:03 AM Report abuse +4 rate up rate down Reply
janswizz

Now everyone knows the price of gas will come down by September 1, 2012 just in time for the election fiasco.

September 21 2011 at 7:36 AM Report abuse +3 rate up rate down Reply
tbbikerdad

NO , NO, NO, YOU ARE AALL WRONG , O P E C HAS NOTHING TO DO WITH RATE AMERICA PAYS FOR OIL . IT IS MOSTLY TAXES , NOTHING ELSE . ....AMERICAN COMMERCE DEPARTMENT SETS THE RATE AMERICA PAYS FOR ALL COST OF LIVING . IT HAS NOTHING TO DO WITH ASIA , OR WEATHER , OR SPECULATORS , OR CHINA . THE RATE AMERICA PAYS AT THE PUMP IS PURELY POLITICS . COMMERCE DEPARTMENT GETTING ALL THEY CAN TILL THE PEOPLE GET MAD ENOUGH TO FIRE THEM ALL . A BARREL USED TO MEASURE 5 5 GALLON . TODAY IT IS 4 2 . COMMERCE KEPT THE 5 5 GALLON PRICE . ADD ALL THE OTHER AMERICAN TAXES TO IT . IT IS NOT COMPLICATED AT ALL . COMMERCE DEPARTMENT KEEPING C O L UP AS LONG AS POSSIBLE TILL WE GET MAD ENOUGH TO ............... FIRE THEM ALL .... send paper mail to all your local and federal politicians , resign or get fired . SAME THING WITH TOBACO AND BEER ....MOSTLY TAXES . .......ALL WE DO IS COMPLAIN . TELL YOUR LOCAL REPS TO STOP THIS . THEY ARE SUPPOSED TO BE SPEAKING FOR THE PEOPLE . ALL POLITICS IS THE SAME . FIRE THEM ALL , TAKE THE PRESIDENT WITH YOU . My name is T i m

September 21 2011 at 7:24 AM Report abuse -3 rate up rate down Reply
1 reply to tbbikerdad's comment
janswizz

Nice thought Tim. The federal politicians have paper shredders and the American commerce department works on the Bubba System.

September 21 2011 at 7:35 AM Report abuse +3 rate up rate down Reply