POSTED: Friday, July 12, 2013 - 5:46pm
UPDATED: Saturday, July 13, 2013 - 1:14pm
As we learned earlier in the week, Texas oil production is hitting record levels.
And viewers have asked us, why don’t gas prices go down as a result?
It is a question lots of people have.
“We’ll probably see prices go up in the next week or two, 10-20 cents a gallon in that time frame,” says Patrick DeHaan, an analyst at GasBuddy.
As we told you in an earlier story, oil production in Texas is going gang busters.
So, why is gas still so expensive? And, why is it still going up?
Part of the reason, we may pump a lot of oil here, but it doesn’t stay here.
“That’s right, that’s right,” DeHaan says, “Oil companies can send their oil or gasoline or refined products overseas if they like.”
Chicago is home to the West Texas Intermediate Crude Oil futures trading.
And the price of that oil has gone up $10 in the last two weeks.
And it’s going higher.
“You know, it’s certainly true, but as long as commodities are publically traded,” he says, “it is something that unfortunately we will continue to be subject to. Much how the stock market would react from bad news or news from the Federal Reserve. It’s just something that you have to digest when you’re investing or when you’re trading commodities.”
And every time someone sneezes in the middle east, these guys get nervous.
And roller coaster will continue until the fall.
“Summer driving season when it concludes,” DeHaan told us, “gas prices will likely go back down."