Oil Prices Plunge, Gas Not So Much

With crude oil so expensive, they can't make money

(NEWSER) - Add one more victim to the soaring price of petroleum—refineries. Yes, despite gas prices rising another 6% in February, refineries in the US Northeast are shutting down because they're losing money, reports Wall Street Journal . And with Philadelphia-based Sunoco set to close the largest refinery in the region in July, expect gas prices to keep going higher. "Our Northeast refining business has lost nearly a billion dollars in the past three years, and those losses have threatened Sunoco's very existence as a company," said a Sunoco spokesman. More»

(NEWSER) - It doesn't pay to drill, baby, drill anymore. Falling world prices have brought an end to the boom in domestic drilling for oil and natural gas, the New York Times reports. Last summer, 2,400 gas and oil rigs were deployed in the hunt for energy. Today, that figure is 1,200 and still dropping. “The big bonanza is over,” said one Texas driller whose company has gone from 35 rigs to 8. “Everyone is really shocked how fast everything has turned.” More»

High supply, falling demand will ease prices, say experts

(NEWSER) - Gas prices are holding steady at $3.92 a gallon, and that could be on the verge of coming down, reports USA Today . With a key benchmark falling to a two-month low yesterday and growing signs of a global economic slowdown, experts think pump prices will fall short of the most dire predictions , as well as short of last year's $3.99 high and the all-time record of $4.11 set in 2008. Already in pricier markets, such as Chicago and Los Angeles, prices have dropped as much as 20 cents per gallon. More»

Sure, policy affects things ... eventually

(NEWSER) - As gas prices rise, President Obama's approval rating falls , which makes sense, because those painful numbers at the pump are all his fault, right? Wrong, say oil experts and economists. The Washington Post breaks down their arguments:

• Policy: It definitely affects things, but it takes a long time for that to happen. Cars can take a decade to turn over, for instance, so tightening fuel efficiency rules doesn't kick in immediately. One expert notes that legislation George W. Bush signed in 2007 is helping stop the "current situation from getting worse."

Recent posturing has already sent price up 20%

(NEWSER) - Going to war with Iran would be an expensive proposition for America's drivers. Tensions over the country's nuclear ambitions have already pushed crude oil prices up 20% to a record winter high, energy experts tell the New York Times . That's translated to an average $3.73 per gallon at pumps nationwide, with prices well over $4 in California. Summer usually pushes prices around 20 cents higher, but tensions with Iran could tack on an extra 50 cents or more. More»