Discuss the Relationship Between the Retail Price of Gasoline and the Price of Crude Oil

The United States of America imports crude oil as well as gasoline every day, and since both represent commodities trade in the daily base around the world its price is determined by the supply and the demand. Usually many factors affect the price of gasoline and crude oil, per example a change in political issue, country's stability, driving habits, economy and weather, per example in August 31, 2005 when Hurricane Katrina hit Louisiana, Texas, and Mississippi it interrupted the oil production, importation, and refining in the Gulf Eden, caused power outages that shut down the pumps that keep the product flowing. The Louisiana Offshore Oil Port, which imports 11% of all U.S. oil consumption, closed on August 27 and the impact of the storm on the infrastructure impact reported a reduction in production of 420,000 barrels per day. U.S consumers anticipating the increase price of Gasoline created demand, and supply being limited some areas sold gasoline for as much as $6 per gallon, One BP station in the south of Atlanta was selling gas at $5.87 per gallon less than a day after Katrina hit. Continued shortages in supply combined with greater