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Andy Lipow of Lipow Oil Associates breaks down why the West Coast isn’t seeing a decline at the pump.
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Let's bring in -- from Houston and in that out with that let Powell oil associates and -- that's all I -- to deal with California.
Why is gas going up in California what is going down on every place else.
Well it's not only California but it's Washington and Oregon states as well and the reason is because of extended refinery down time especially in the state -- watching ten.
As well as numerous refining problems in the San Francisco area which is impact -- supply.
Has -- got anything to do with the environmental regulations and environmental standards on the West Coast.
Well not per say the fact is that gasoline and that's holding California is more difficult to make and when we do have these problems it's very hard to find alternative supplies.
If you're gonna buy -- gasoline from Korea it's six or eight weeks away from getting too.
The area that it's needed OK we got it.
Let's move away from the West Coast and look at gas prices generally.
They are in fact coming down we're down about twenty send a little bit more than that from the high at the end of march.
I want to know wide gas prices have not fallen even further.
Because -- gone from a 107.
To 94 dollars a barrel while we -- a big a drop of gas prices across the country.
Well the big reason is when you look at that average it's being tainted if you will by the West Coast rising by this seventeen cents a gallon.
But prices are gonna continue to fall -- still saying it'll be three and a half dollars about a gallon.
By the end of this summer we're seeing an improvement in supplies as refineries return from their maintenance in the rest of the country.
-- -- 350.
As a national average by the end of the some what would you say that that is the new baseline.
That's the new normal for gas.
It probably is because it's we found it's very difficult for crude oil prices to get below ninety dollars a barrel here in the US.
And it about a 105210.
Dollars a barrel overseas just due to the demand that we're seeing in places like Asia and the Middle East real fast oil down sharply is that a bad sign for the US economy.
Oil down because we week is that it.
Well oil down is because.
The US as -- as well -- slowing growth and the rest of the world glad I think on balance -- will be a good thing for the consumers because it will help other areas of the -- -- I agree -- that yes it's good -- everybody who -- -- -- -- -- that's good news -- except in California Oregon and Washington and in the -- always a pleasure thanks for joining -- -- I wanna get back to nick.
