Oil prices tumbled more than $2.00 after a "surprise" surplus was reported in a government report that said gas and oil inventories rose unexpectantly.
In my opinion, there's no "surprise" here.
Let's look at the main reasons for the dramatic price increases in the cost of gasoline:
1. The major culprit, numero uno, on the list, in my opinion, is SPECULATION. Almost all of the recent increases in the cost of a barrel of oil have been the result of rampant and unjustified speculation. Here are the primary examples:
Fear of terrorist attacks against Saudi Arabia oil fields leading to disruption in supplies. ONE such attack occurred but it was repelled by Saudi security forces. In reality, no disruption actually happened. In fact, the Saudis are reportedly pumping at peak capacity.
Fear of oil disruptions due to unrest in Nigeria. There have been no substantial disruptions in the supply of oil from Nigeria.
Fear of oil disruptions due to the situation in Iran. There haven't been any disruptions in the oil supply due to the situation in Iran.
Fear of disruption in oil supplies from Bolivia. That's right, Bolivia. It's a minor player, and there haven't been any disruptions, but the price increases just keep on coming.
Fear of refinery shut downs because of "spring maintenance." That's an all-time favorite for justification for increasing gasoline prices but the fact is refineries are now operating at 88.8% capacity which is much higher than the so-called experts had anticipated and speculated upon.
My all time favorite reason overheard on KNX news radio two weeks ago

I kid you not) "Oil prices rose on fears oil prices would rise."
You could probably factor in your own inane reason you've heard as an explanation as to why prices have increased as much as they have but consider the reality of it: "In its weekly stockpile report, the Energy Information Administration said crude supplies rose by 1.7 million barrels, while the closely watched gasoline inventories swelled by 2.1 million barrels." "Analysts were looking for a 100,000 barel decline in crude and a 700,000 barrel drop in gasoline supplies." The latter, of course, helped to drive the cost of gasoline way-up but the reality is the opposite occurred.
Don't look for any relief at the pumps, however, because we're dealing with "market forces" and not with reality...