Can someone please explain this to me?!

I consider myself a fairly well-educated person, but the prices we are all paying at the pump really have me befuddled.

I mean, I studied economics in college and thought that at least gave me a decent handle on the dynamics of supply and demand.

But, the info at hand (thanks be to today's issue of the illustrious Wall Street Journal) just doesn't seem to fit the models my illustrious professors at Texas Tech University tried to drill into my thick skull.

Fact #1: Consumer DEMAND for fuel has DROPPED over the last 6 weeks. In fact, we've experienced the biggest drop in demand in 16 years.

Fact #2: Domestic SUPPLY is HIGHER than any time since February 1994.

Fact #3: The price per gallon of gas is over $1 higher than it was this time last year!

Why?!?

Demand is down. Supply is up. And, yet the price continues to rise?!

I tell ye socks, there's something rotten in Denmark . . .