gasoline prices went UP this week in northern California....

[econoclast]

14. Like real estate...it's all about location!

Despite the fact that we talk about global oil prices, it's not really a global market. In the US things are divided into 5 PADDs

PADD = petroleum administration for defense district

This organization is a holdover fromWW2

California Oregon Washington Alaska (Nevada?). Are in PADD 5. You can google pipeline maps for petroleum pipelines and quickly see that there aren't many going from the Gulf Coast where most of the refineries are to PADD 5

Canadian oil supplies - which have driven down the "global" price is hard to refine. Most of the refineries that can do it are in the Gulf states. There is good distribution from there to the Midwest ... But not so much to PADD 5. So gas prices in the Midwest are relatively low. But since there isn't easy distribution from there to the West Coast, that increase in supply/ decline in price doesn't easily translate to the West Coast.

Couple that with the fact that CA law requires special blends, the supply opportunities are limited. That and CA has a hefty gas tax.

Like I said ... All about location!