The oil companies are making a ton as they sell gasoline at a huge premium over the cost of the oil.
See this story from Dow Jones News today:
Retail Gasoline Prices Soar In US
Retail gasoline prices have soared this week as a series of refinery outages forces drivers to pay more at the pump even as it helps push oil prices further down on their historic collapse.
Bulk-market gasoline prices at regional hubs are trading up across the country this week, rising as much as 57% in the Chicago area to hit its highest prices in almost a year, according to the Oil Price Information Service. Prices have soared above $5 a gallon in parts of California.
Some prices, including gasoline futures, have retreated in the past two days, but at times this week drivers in places like Chicago and Los Angeles have had to fill up at prices the equivalent of more than $110 a barrel for crude, even as U.S. crude prices have fallen below $43 and set new six-year lows. The spread between gasoline and oil prices have been double and sometimes as much as sixfold higher than what would have been expected, said Tom Kloza, co-founder of OPIS.
“This is the most extreme summer that I’ve ever witnessed,” he added.
The unexpected turn saps some of the benefits U.S. consumers had started reaping from a global glut of oil. Drivers have flocked to the road this year and refiners have been running near capacity as both take advantage of oil prices that have fallen about 60% from last year’s highs.