Oil's up, Gas is down

Nowadays, in U.S. oil prices over the past few weeks have received a pleasant surprise at the pump. However while oil prices have increased, retail gasoline is moving in the opposite direction. The moves may seem counter-intuitive, since crude oil is used to produce gas. But while the two are closely related, there are a number of factors that can push their prices apart in the short term. Retail gasoline is more expensive than crude oil, because of taxes, distribution and the refining process. Oil and gas have always moved together with gas prices following on oil moves. They do face different supply and demand forces, but sometimes pulled in opposite directions. Gasoline is not the only product for which crude oil is used. Just 42% of gasoline among every barrel of crude oil produced used for crude oil in U.S. The rest was divided among other products including diesel, jet fuel and consumer goods for tires and link. Demand for these products also goes some way to shaping oil prices. Diesel, in demand as a generator of electricity in the developing world, has become more expensive in recent months.