Oil just hit a 6-year low. Here's why gas prices haven't followed suit.


The price of U.S. crude oil is below $40 for the first time since 2009, when the global economy was in shambles, with West Texas Intermediary crude selling for $39.66 early Monday. The international benchmark, Brent crude, was down 21 percent year to date, at $44.62 a barrel. U.S. gas prices haven't fallen nearly that much, especially if you live in the Midwest or West Coast. The reason? Refinery problems, says The Wall Street Journal.
The U.S. hasn't built a major new gas refinery since the Carter administration, and the refineries that exist have been running at capacity for a more than a year as lower gas prices have kept demand high in the U.S. That's led to leaks and fires that have forced refineries to shut down. "Refiners have been running plants hell-for-leather to take advantage of strong margins," RBN Energy analyst Sandy Fielden tells The Wall Street Journal. "It stands to reason that if you run any sophisticated plant harder and faster than normal — you are bound to end up breaking something."
Refineries have scheduled long-overdue maintenance closures this fall, when demand for gas is expected to fall. And if nothing goes wrong, gas prices nationwide could drop to as low as $2 a gallon this year, according to AAA predictions. The national average now is $2.60 a gallon.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Can Texas redistricting save the US House for the GOP?
Today's Big Question Trump pushes a 'ruthless' new plan, but it could backfire
-
'No one should be surprised by this cynical strategy'
Instant Opinion Opinion, comment and editorials of the day
-
Intellectual property: AI gains at creators' expense
Feature Two federal judges ruled that it is fair use for AI firms to use copyrighted media to train bots
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off