The Collapse of the Refinery Cartel?
U.S. average retail gasoline prices fell 17 cents per gallon as Midwest refiners recovered from recent difficulties and produced more gas, according to an industry analyst. The national average for self-serve, regular, unleaded gas was nearly $2.8843 a gallon on July 27, down from the July 13 level of $3.0577, according to the nationwide Lundberg survey of about 7,000 gas stations. Prices fell after refining capacity in Coffeyville, Kansas and Whiting, Indiana came back online.
Reuters seems to be arguing that prices have declined as the supply curve shifted out, which we noted here as we also argued for a cartel model explanation of the same facts.