High Inventories Do Not Translate to Lower Fuel Prices

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Oil prices remain high even though inven­to­ries in the US for crude oil, gaso­line, and dis­til­late fuel (which includes both diesel fuel and heat­ing oil) are at above aver­age lev­els. Unlike sim­i­lar sit­u­a­tions in the past, prices have not dropped sig­nif­i­cant­ly due to the expec­ta­tion that demand will peak soon, draw­ing down the inven­to­ry, and the lack of spare capac­i­ty through­out the sup­ply chain.

Background
Last time total gaso­line inven­to­ries were as high as now was June 4, 1999
Price then was $1.11/gal
Dis­til­lates include both diesel fuel and heat­ing oil