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I have come to the realization that oil prices do not translate directly to gas prices we pay at the pump. Even with a glut of oil, the gas prices at the pump depends on refineries which are controlled by the local companies. I think the $4 gas is the new normal. Also, the Saudi economy rely a lot on high oil prices so they wont dump more oil in the market.


> oil prices do not translate directly to gas prices we pay at the pump

Technically true, but the correlation is usually very strong: http://www.gasbuddy.com/retail_price_chart.aspx?city1=USA%20...


Gas prices increases follow oil price increases. Gas prices don't decrease much following oil price decreases.




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